Can My Workers’ Comp Payments Be Reduced if I am Getting Unemployment in Pennsylvania?

Workers’ Compensation is paid by employers (usually through an insurance carrier) to cover workers’ injuries after on-the-job accidents.  Unemployment is paid into by employers and workers to cover your wages in the event that you lose your job.  If you are out of work because of a work-related injury, it seems both of these policies could cover you, but what they cover and how the two policies interact is often a bit confusing, potentially making it unnecessary to get both.

In general, unemployment benefits are “credited as against” Workers’ Comp benefits under the Workers’ Comp Act, meaning that your Workers’ Comp payments will be reduced by whatever you get from unemployment.  That being said, you can apply for and receive both unemployment and Workers’ Comp at the same time, but it usually is not worth it because of the way unemployment insurance applies to your case.

For help with your injury claim, call our Certified Pennsylvania Workers’ Compensation Lawyers at Cardamone Law today at (267) 651-7945.

Can You Get Workers’ Comp and Unemployment at the Same Time in Pennsylvania?

Workers’ Comp and unemployment are both designed to cover workers’ wages when they cannot work, but they do so for different reasons and through different processes.  While unemployment is paid by the Commonwealth, Workers’ Comp is paid by employers (or, more likely, through their insurance carrier).  Of course, workers and employers pay into unemployment insurance, but the payments are ultimately made by the state, whereas Workers’ Comp is paid privately.

With unemployment, you are covered for up to half your wages while you are unemployed through no fault of your own, and you can only get these benefits if you are still willing and able to work.  One might expect that if you are injured and cannot work that you then would not qualify, but injuries that qualify you for benefits under Workers’ Comp can often meet exceptions for unemployment that would allow you to still get unemployment benefits.

Workers’ Comp, on the other hand, is there to cover workers when they get injured while working, and it pays for 2/3 of their lost earnings and covers their medical bills.  It also pays other benefits for permanent losses (including lost function, facial scarring, lost vision, and lost hearing).  Our Philadelphia Workers’ Comp lawyers can also help you claim 2/3 of the difference in your old and new wages when your injury allows you to work at a reduced capacity.

The Workers’ Comp Act specifically mentions what happens when you get both unemployment benefits and Workers’ Comp benefits at the same time, so you clearly can get them at the same time.  Additionally, there is nothing in the qualifications standards for either program that would bar you from getting them both at the same time when you are out of work.

Does Unemployment Reduce Your Workers’ Comp Benefits in Pennsylvania?

According to the Workers’ Comp Act, any payments you get from unemployment are “credited as against” what you are paid by Workers’ Comp.  This means that for every dollar they pay you through unemployment, you get one less dollar through Workers’ Comp.

In practice, this means that you are going to get paid the same amount whether you use Workers’ Comp alone or you apply for both programs.  For this reason, it usually is not worth the extra effort to apply for unemployment while you are getting Workers’ Comp, but there are other reasons not to get both at the same time, too.

Should I Get Both Unemployment and Workers’ Comp in Pennsylvania at the Same Time?

Although you can qualify for both programs, it usually makes no practical sense to apply for or receive unemployment benefits through the Commonwealth while you are getting Workers’ Comp benefits through your employer.

First and foremost, Workers’ Comp is reduced by whatever you make from unemployment, preventing you from “doubling up” or getting paid twice for any of these benefits.  This means that applying for unemployment is a lot of extra work for literally no benefit.

Additionally, Workers’ Comp pays more.  Unemployment payments are calculated using a “base year” based on previous earnings, and there is a complex method of calculating how much you get.  In any case, benefits usually equal 1/2 of your average weekly wages, but Workers’ Comp pays 2/3 of your average weekly wage.  Caps for unemployment are also lower at $605 maximum per week versus the maximum of $1,325 per week for Workers’ Comp (using 2024 numbers).

Lastly, unemployment benefits run out quickly, with full-time compensation exhausting your benefits in as soon as 18-26 weeks.  Workers’ Comp benefits continue at the full rate of 2/3 of your weekly wage for as long as your disability is considered “total.”  It isn’t even until 2 years of “total” disability that your employer is allowed to challenge that status as a matter of course and make you go through exams to check if your disability is still “total.”  If you do return to work with reduced earning capacity, you can still get “partial” disability benefits covering 2/3 of the difference between your old and new wages for up to 500 weeks.

If you remain totally disabled, you can continue to draw Workers’ Compensation benefits indefinitely.  If you return to work on a partial basis and receive partial Workers’ Comp benefits, you would be ineligible for unemployment because you are actually working.

Do Other Disability and Other Insurance Programs Reduce Workers’ Comp Payments in Pennsylvania?

There are a few other potential ways you could receive benefits to cover a disability, including private or employer-provided “disability insurance” policies.  These usually come in the form of short-term disability policies and long-term disability policies.  These payments are separate from Workers’ Comp payments and, given that they are both paid for by your employer, typically designed to fit together.  This policy also covers you regardless of whether the injury was work-related or not and may cover additional lost wages over what Workers’ Comp covers.

Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) are paid through the Social Security Administration.  The offset calculation with Workers’ Comp is different for these benefits, and the Workers’ Comp Act has specific rules for how only half of the amount paid as “‘old age’ benefits” offsets Workers’ Comp payments.

Call Our Workers’ Compensation Lawyers in Pennsylvania Today

Call Cardamone Law at (267) 651-7945 for a free case review with our Harrisburg, PA Workers’ Comp attorneys.