If you’ve been injured at work, you may qualify for workers’ compensation benefits. However, if your injury leaves you permanently disabled, you might also qualify for Social Security Disability Insurance (SSDI). Understanding how these two benefits interact under Florida law is crucial to avoid surprises in your compensation.
The workers’ compensation offset
When you receive both workers’ compensation and SSDI, federal law limits the total amount you can collect. The combined benefits cannot exceed 80% of your average current earnings before the injury. If your benefits exceed this limit, Social Security reduces your SSDI payments through what’s called a “workers’ compensation offset.”
Florida law follows this federal guideline. For example, if your SSDI and workers’ compensation benefits together total more than 80% of your pre-injury wages, Social Security will lower your SSDI payments to bring the total under the limit.
How Florida calculates average earnings
Florida uses your average weekly wage (AWW) to determine workers’ compensation benefits. The state calculates this by averaging your earnings over the 13 weeks before your injury. This figure becomes the baseline for both workers’ compensation payments and the federal offset calculation.
Keep in mind that workers’ compensation typically pays two-thirds of your AWW, subject to state limits. When combined with SSDI, your total benefits may still trigger a reduction if they exceed the 80% threshold.
Reducing the impact of the offset
In some cases, structuring your workers’ compensation settlement as a lump sum may reduce the offset. State law allows settlements to spread out over your life expectancy, which can lower the calculated monthly amount. This strategy may preserve more of your SSDI benefits.
If you qualify for both workers’ compensation and SSDI, understanding the interaction between the two ensures you maximize your benefits under Florida law. Careful planning can help minimize reductions and provide the support you need.