Workers comp and long term disability benefits can often be paid at the same time, but your long term disability check is usually reduced by what workers comp pays. Most people don’t get two full checks. Instead, the two programs work together so your total income stays near a set share of your old pay. That can feel unfair when you are hurt and bills keep coming. Knowing how the math works helps you plan, avoid surprise overpayments, and protect what you are owed.
Workers Comp And Long Term Disability: The Rule
Workers comp and long term disability come from two different places. Workers comp is a state insurance system. It pays when you are hurt on the job. In most cases, it pays about two-thirds of your average weekly wage, up to a state cap. LTD is usually a private policy through your employer. It pays whether or not the injury happened at work.
Most group LTD policies have an “offset” clause. That clause lists “other income benefits” that cut your LTD check. Workers comp is almost always on that list. For example, say your LTD policy pays 60% of your $5,000 monthly salary. That is $3,000. If workers comp pays you $2,000 a month, the LTD plan typically pays only the $1,000 difference. As a result, your total stays at $3,000.
SSDI adds a third layer. Under federal law, SSA can reduce SSDI when your workers comp and SSDI together exceed 80% of your “average current earnings.” Here is how the key rules compare side by side.
| Rule | Workers Comp | Private LTD (typical group policy) | SSDI (ssa.gov) |
|---|---|---|---|
| Who pays | Employer’s insurer under state law | Private insurer under your policy | Social Security Administration |
| Typical benefit | About 66 2/3% of average weekly wage, up to the state cap | Often 60% of pre-disability pay | Based on your lifetime earnings record |
| Does it reduce the others? | Generally not reduced by private LTD | Usually reduced dollar-for-dollar by workers comp and SSDI | Reduced if comp plus SSDI exceeds 80% of average current earnings |
| Work-related injury required? | Yes | No | No |
| 2026 earnings limit | Varies by state | Set by policy | $1,690/month substantial gainful activity ($2,830 if blind) |
| When the offset ends | Not applicable | When comp stops or per policy terms | At full retirement age (67 for people born in 1960 or later) |
| Denial appeal window | Set by state law | At least 180 days under DOL ERISA rules | 60 days from the notice |
These figures are general and illustrative. Every policy and every case is different. Always confirm your exact numbers before you act.
When the Answer Changes
The rules for workers comp and long term disability are not the same everywhere. A few situations change the math in a big way.
Reverse offset states. In about 15 states, workers comp is the one that gets reduced, not SSDI. SSA lists these “reverse offset” states. They include California, Florida, Minnesota, New York, Ohio, Oregon, Washington, and Wisconsin, among others. In these states, SSA typically does not cut your SSDI. Instead, the comp insurer may lower your comp check. Confirm the current list with SSA and your state board.
Federal workers. If you work for the federal government, workers comp runs through DOL’s FECA program. FECA generally does not let you collect full comp and an OPM disability retirement at the same time. You typically must choose one. As a result, federal workers should compare both options carefully before they elect.
Policies with no workers comp offset. Some individual LTD policies you bought on your own do not subtract workers comp. In that case, you may be able to receive full payments from both. Typically, these are private policies you paid for yourself, not employer group plans. Your policy wording is the proof. Ask the insurer for a full copy, including any riders.
Lump-sum settlements. When you settle a comp claim, the LTD plan and SSA may treat the lump sum as ongoing income. However, careful settlement wording can spread the lump sum over your life expectancy. SSA generally accepts that approach. This can shrink the monthly offset a great deal. It is one of the most important traps in workers comp and long term disability planning.
What to Do Next
Start by getting three documents. First, ask your employer or HR for your full LTD policy and summary plan description. Second, keep every workers comp benefit notice. Third, if you applied for SSDI, save every SSA letter. Then report your workers comp benefits to your LTD insurer right away. In most cases, LTD insurers require you to apply for SSDI too. If you don’t report income, the insurer may later demand repayment of an overpayment. That can be a heavy and stressful bill.
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Before you sign any comp settlement, ask how it will affect your workers comp and long term disability benefits together. Settlement figures are illustrative, and every case is different. A licensed attorney can review the offset language and the settlement wording. Many attorneys offer a free first consult.
Frequently Asked Questions
Can I collect workers comp and long term disability at the same time?
Yes, in most cases you can collect workers comp and long term disability at the same time. However, your LTD check is usually reduced by the amount workers comp pays. Your total income typically stays near your policy’s set percentage of your old pay.
Will my LTD insurer make me pay money back?
It may. If you receive workers comp or SSDI back pay for months when LTD paid in full, the insurer can typically claim an overpayment. Report all benefits quickly. Ask in writing how any repayment will be calculated.
Does SSDI reduce my workers comp too?
It depends on your state. In most states, SSA reduces SSDI when comp plus SSDI exceeds 80% of your average current earnings. In reverse offset states, the comp benefit is reduced instead. Confirm your state’s rule with SSA and your state board.
Workers comp and long term disability: Quick Recap
If you remember one thing about workers comp and long term disability, make it this: the rule is set by the state (or the federal program), not by the insurer, and the official source is linked above. Every figure on this page about workers comp and long term disability should be confirmed with the agency before you act on it.
Questions about workers comp and long term disability that this page does not answer are usually answered for free by the state workers’ comp agency’s information line — and, for a disputed claim, by a licensed attorney in a first consultation.
See your state’s exact numbers
What you are owed depends on your state’s benefit caps and deadlines. Start with your state’s settlement and claim guides for the exact figures.
Sources & How to Verify
The figures on this page come from official government and industry sources. Workers’ comp benefit caps, deadlines, and rules change, so always confirm the exact figure with your state’s workers’ comp board or a licensed attorney before acting. Settlement estimates are illustrative, and every case is different.
- Your state workers’ comp board, division, or commission: the official source for your state’s exact caps, deadlines, and forms — search “[your state] workers compensation board”
- U.S. Department of Labor (OWCP): dol.gov — federal workers’ compensation overview
- NCCI: ncci.com — workers’ comp rating and benefit data
- Social Security Administration: ssa.gov — benefit-cap and SSDI offset data
- Insurance Information Institute: iii.org — neutral workers’ comp background
Content last reviewed October 2026. If you notice an outdated figure, please contact us.
Related Guides
- Workers Comp Settlements by State (All 50)
- Workers Comp Claims by State (All 50)
- More in This Category
- Settlements by Injury
- Benefits Explained
- Workers Comp Glossary
Informational only — not legal, medical, or financial advice. Workers Comp Explained is an independent educational resource, not a law firm, insurer, or medical or financial advisor, and this page does not provide legal, medical, or financial advice. Workers’ compensation benefits, deadlines, and rules vary by state and change over time, and settlement estimates are illustrative only. Always confirm the exact figure and any deadline with your state’s workers’ compensation board and a licensed attorney before you act.