Question of the Month: Will I Lose my Unemployment Benefits if I Apply for Disability?

“Many of our clients, even if they are collecting unemployment, will file for disability right away,” observes disability attorney Demetra Geller at Nash Disability Law.

“Social Security does not prohibit a claimant from filing for disability while collecting unemployment. However, many of our clients rightfully observe that the two programs have competing requirements.”

“To qualify for unemployment, you generally must be ready, willing and able to work, while disability benefits require that you’re unable to work for at least a year due to qualifying impairments. Applying for both can seem like a contradiction, potentially impacting your credibility with a Social Security administrative law judge (ALJ) who reviews your case.”

“If a claimant is denied on their initial and reconsideration requests, they are afforded the opportunity for a hearing in front of an ALJ. The past or present receipt of unemployment could be a factor for some judges in deciding whether the person truly qualifies for disability benefits,” Geller advises.

“Some judges request that the claimant amend their alleged onset date (the date their disability began) to a date after their unemployment ended. However, I always explain that many claimants can truthfully certify that they are ready, willing and able to work at a job within their restrictions, or at a job that would accommodate their limitations. Some are ready, willing and able to do a part-time, non-competitive job under Substantial Gainful Activity (SGA) rules which state that an individual can still qualify for disability benefits if they earn a gross income of less than $1,550 a month (as of 2024).”

“We have some clients who are very concerned that once they are required to report that they have also filed a disability claim, their unemployment benefits may be terminated. Some employment offices monitor this and will stop the unemployment benefits. Others do not. Most of the time I see that unemployment offices will not stop benefits if you have filed for disability, but there is of course no guarantee.”

A factor critical in the consideration of when to apply for disability benefits is the timing for review.

Geller states, “The current timing for an initial disability decision in the State of Illinois is upwards of eight months or longer, so waiting until unemployment benefits end to file only pushes this out further. I am careful in counseling our clients in this situation to be sure they are aware of the significant backlog in decisions and understand that while unemployment benefits are a critical lifeline, they are temporary.”

The rules regulating Social Security Disability benefits are complex and not always easy to decipher.

That’s why having a skilled, Social Security Disability Lawyer experienced in your corner just makes good sense.

The disability attorneys at Nash Disability Law have helped thousands of people in the Chicago area win the benefits they have rightfully earned.

We only get paid when you win your benefits. For a free evaluation of your specific case, CONTACT US TODAY.