What Is the Law for Receiving SSDI While Receiving Unemployment Insurance?

SSDI

Social Security disability insurance covers workers who apply and who qualify under the Social Security definition of disability. The disability definition requires that the individual not be able to perform substantial gainful activity. That includes the inability to earn more than $1,000 each month, as of 2011, although the figure changes periodically. It takes a year or more to receive benefits from SSDI; it is not uncommon for individuals to apply for unemployment compensation benefits while they wait. If you have a hearing or an appeal, the judge may not award your disability benefits if he finds you are receiving unemployment benefits. If the Social Security Administration completes your disability determination and you earn less than the substantial gainful employment amount and lose your job, your unemployment claim may be acceptable.

The states follow federal guidelines for qualification for unemployment benefits. Federal guidelines require that you are able to work and available for work for any week that you accept unemployment benefits. Some states construe the regulations more liberally than others, but if you are offered suitable employment and do not accept it, your unemployment benefits cease.

Social Security jurisprudence requires the judge to consider receipt of unemployment benefits in Social Security disability decisions. There is no law that you cannot collect unemployment benefits while waiting for your disability claim, reports Social Security Insider. Your state may require repayment for any unemployment benefits received. If your state determines that you received unemployment benefits to which you were not entitled, it may charge you with fraud and require repayment for all benefits paid. Some states add a penalty to overpayments under these circumstances. Other states, such as Texas, allow you to collect unemployment benefits or partial benefits if you have a permanent disability and lose your job. According to Legal Services of New Jersey, the Social Security Administration and unemployment office share information.

California has a state disability insurance to cover workers who cannot work as a result of a disability. This is not the same as the unemployment insurance provided to California job seekers. New Jersey has a "disability during unemployment" program to aid individuals disabled after losing a job. Check with your state to see if you qualify for other programs, such as Temporary Assistance to Needy Families or Supplemental Security Income. Your state may also have a state-funded disability program available while you wait for SSDI benefits.