The Social Security disability program is meant for those who are unable to work due to physical or mental illness. Thus, people who qualify for disability do not qualify for unemployment as they cannot return to work. However, some people attempt to "double dip" by claiming unemployment for as long as possible and then filing for disability once their employment benefits run out. These people should not be eligible for unemployment in the first place, but may get away with it because of poor cross-referencing between unemployment and disability applications.
Prohibited Activity
In most cases, double dipping is prohibited, as eligibility for disability requires the worker to be unable to work, while he must be available for new full-time employment to be eligible for unemployment benefits. Thus, if the disability office discovers that a claimant is double dipping and reports the activity to the unemployment office, the claimant may be ruled to have been ineligible for unemployment and have to pay back unemployment benefits that he received.
Exception
Those who qualify for disability may work part-time; they are only disqualified if they work full-time. If a person qualifies for disability, she may make up to the national average wage index --- as of 2011 this is $980 a month. Thus, if an employee earns less than $980 per month, she still qualifies for disability. This employee may also qualify for partial unemployment if she began working part-time after being let go from a job.
Private Disability Insurance
If a person who is receiving unemployment applies for private disability insurance, it is not considered a double dip. Private disability insurance policies have their own standards, which may or may not conflict with the unemployment office eligibility requirements. Unemployed workers receiving private disability insurance benefits, however, must report the benefits each week when they re-certify for unemployment, and the unemployment office must consider whether the person is able to accept new work due to the disability.
Accommodations Requirement
Workers who have disabilities must communicate with their employers about those disabilities and allow the employer the opportunity to attempt to make accommodations for the worker. If the employer cannot make suitable accommodations, the employee may be eligible for unemployment if he is fired. This is not a double dip situation because the employee can search for a new job, which provides accommodations for him rather than applying for disability insurance benefits.
Tags: disability insurance, eligible unemployment, unemployment office, disability insurance benefits, double dipping, insurance benefits