Suffering from a permanent disability can drastically change your life, especially when it comes to your ability to earn a living. While benefits such as workers' compensation and Social Security Disability Insurance (SSDI) are designed to provide financial support, many recipients still wish to work — whether to supplement their income or maintain a sense of purpose.
However, working while receiving disability benefits can be complicated. Both Louisiana's workers' compensation system and the federal SSDI program have strict rules regarding employment, and failing to follow those guidelines can put your benefits at risk. Understanding these regulations is essential to ensuring you remain compliant while maximizing your income.
Can You Work While Receiving Permanent Disability Benefits in Louisiana?
Louisiana's workers' compensation system provides two types of permanent disability benefits:
- Permanent Partial Disability (PPD): For workers who can still perform some type of work but have sustained permanent limitations, such as a loss of mobility or function.
- Permanent Total Disability (PTD): For workers who are deemed unable to perform any meaningful employment due to their injury.
Whether or not you can work depends on the type of disability benefits you are receiving and the nature of the work you intend to do.
1. Working While Receiving Permanent Partial Disability (PPD)
Louisiana allows individuals receiving PPD benefits to continue working if they can find a position that accommodates their physical limitations. For example, if a construction worker suffers a serious back injury but can still perform light office duties, they may return to work in a modified role.
However, returning to work may affect your PPD payments. Louisiana law allows insurers to reduce your workers' compensation benefits if you’re earning wages. This is known as an offset. The offset is calculated by comparing your current earnings to what you were earning before the injury. If you’re unsure how additional income may impact your benefits, speaking with an attorney can help you understand your options.
2. Working While Receiving Permanent Total Disability (PTD)
Those classified as permanently and totally disabled are not expected to return to work. PTD benefits are intended for individuals whose injuries are so severe that they are unable to engage in any form of gainful employment.
If you attempt to work while receiving PTD benefits, your payments may be stopped, and the insurer may attempt to claim you are no longer eligible for disability benefits. For this reason, PTD recipients should avoid taking any form of employment without seeking legal advice.
Can You Work While Receiving Social Security Disability Benefits?
The Social Security Administration (SSA) recognizes that some individuals receiving SSDI benefits may still wish to pursue limited employment opportunities. However, strict guidelines determine how much you can earn without jeopardizing your benefits.
1. The Trial Work Period (TWP)
The SSA offers a Trial Work Period (TWP) that allows SSDI recipients to test their ability to work without losing benefits. During this period, you can earn an unlimited amount without your benefits being reduced — as long as you report your earnings to the SSA.
The TWP lasts for up to nine months within a rolling 60-month period. In 2024, any month where you earn more than $1,110 will count as a trial work month.
For example, if you earn $1,200 in March, that month will count toward your nine-month TWP. If you earn less than the TWP limit in the following months, those months will not count. The TWP gives you the freedom to explore part-time or temporary work without losing your SSDI benefits immediately.
2. The Extended Period of Eligibility (EPE)
Once your Trial Work Period ends, the SSA provides a 36-month Extended Period of Eligibility (EPE). During this phase, you can still receive SSDI benefits if your earnings remain below the SSA’s Substantial Gainful Activity (SGA) limit.
In 2024, the SGA limit is:
- $1,550 per month for non-blind individuals.
- $2,590 per month for blind individuals.
If your earnings exceed the SGA limit during this period, your SSDI benefits may be suspended. However, if your income drops below the limit again, your benefits can restart without requiring a new application.
3. Supplemental Security Income (SSI)
For individuals receiving Supplemental Security Income (SSI), working may reduce the amount of your monthly payment. However, the SSA excludes a portion of your earnings when calculating your benefit reduction. For example, the SSA excludes the first $85 of monthly earned income, plus half of any additional earnings beyond that amount.
This system allows some SSI recipients to earn part-time wages while still receiving reduced benefits.
How to Protect Your Benefits While Working
Whether you’re receiving workers' compensation, SSDI, or SSI, taking the right steps when returning to work is essential to protecting your benefits. Follow these tips to avoid complications:
1. Report All Earnings Promptly
Inform the SSA, your employer, and your workers' compensation insurer as soon as you begin working. Failing to disclose your income could result in overpayment demands or suspension of your benefits.
2. Track Your Hours and Earnings
Maintain detailed records of your work hours, pay stubs, and job duties. This documentation can help demonstrate that your earnings remain within the allowable limits.
3. Follow Medical Restrictions
Returning to work in a role that exceeds your physical limitations could jeopardize both your health and your benefits. Be sure your new job aligns with your doctor's medical restrictions.
4. Consult an Experienced Attorney
Understanding the complex rules surrounding disability benefits can be overwhelming. An experienced attorney can guide you through the process and help you avoid mistakes that could put your benefits at risk.
Contact Wanko Workers’ Comp Lawyers today for Legal Representation
Balancing work with disability benefits can be challenging, but understanding your rights and limitations can help you make informed decisions. If you have questions about returning to work, reporting earnings, or protecting your benefits, contact us today. At Wanko Workers' Comp Lawyers, we are committed to helping injured workers and disabled individuals throughout Louisiana secure the financial support they need to move forward.
