Can I Get Unemployment While Waiting for Disability?

The financial strain of being unable to work can lead individuals to explore all available support options, including unemployment and disability benefits. A common question arises regarding the possibility of receiving unemployment benefits while simultaneously awaiting a decision on a disability claim. This situation presents unique challenges due to the distinct eligibility criteria for each program. Understanding these requirements is essential for navigating both systems and making informed decisions about financial support.

Unemployment Benefit Eligibility

Unemployment benefits are state-administered programs designed to provide temporary financial assistance to individuals who have lost their jobs through no fault of their own. To qualify for these benefits, claimants must generally meet specific criteria related to their past earnings and work history. States typically require individuals to have earned a certain amount of wages or worked a specified number of weeks within a designated “base period” before filing a claim.

A fundamental requirement for receiving unemployment benefits is that the claimant must be “able to work” and “available for work.” This means individuals must be physically and mentally capable of performing some type of work and ready to accept suitable employment immediately if an offer arises. Claimants are also typically required to actively search for new employment each week they claim benefits. This involves engaging in verifiable job search activities, such as applying for positions, submitting resumes, or participating in job training.

Disability Benefit Eligibility

Disability benefits, primarily Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), are federal programs overseen by the Social Security Administration (SSA) that offer financial assistance to individuals with severe medical conditions preventing substantial work. SSDI is for those who have worked and paid Social Security taxes, accumulating sufficient work credits. The number of required work credits varies depending on the claimant’s age. SSI is a needs-based program for individuals with limited income and resources, regardless of their work history, who are aged, blind, or disabled.

For both SSDI and SSI, a core eligibility condition is the inability to engage in “substantial gainful activity” (SGA) due to a medically determinable physical or mental impairment. Substantial gainful activity refers to work activity involving significant physical or mental effort performed for pay or profit. The medical condition must be expected to last for a continuous period of at least 12 months or result in death.

The Core Conflict Between Benefit Programs

A fundamental contradiction exists between the eligibility requirements for unemployment benefits and disability benefits, creating a challenge for individuals seeking both. Unemployment benefits require claimants to be “able and available for work” and actively seeking employment, assuming they can re-enter the workforce immediately.

Conversely, Social Security disability benefits are for those unable to engage in “substantial gainful activity” due to a severe medical condition. This means an individual’s impairment prevents them from performing significant work. This definitional clash means asserting the ability to work for unemployment purposes can undermine a claim of inability to work for disability purposes. Claiming one benefit can be seen as discrediting eligibility for the other.

Practical Considerations When Applying for Both

Navigating the application process for both unemployment and disability benefits requires careful attention to reporting and potential financial adjustments. If you receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), it is essential to report any unemployment payments to the Social Security Administration (SSA). The SSA considers unemployment benefits as income, which can affect SSI eligibility due to its strict income and resource limits.

Receiving unemployment benefits might also lead to an overpayment if a disability claim is later approved, especially for SSDI. An overpayment occurs when the SSA determines you received more benefits than you were eligible for, often due to unreported income changes or returning to work. If an overpayment occurs, the SSA will send a notice, and you may be required to repay the amount, potentially through deductions from future benefits. While the federal conflict between the two benefit types is clear, specific state unemployment agencies may have differing rules or interpretations regarding concurrent receipt of benefits, which can influence unemployment eligibility. It is important to be transparent and accurately report your work capacity and any benefits received to both the state unemployment agency and the Social Security Administration.