Workers’ comp, unemployment, disability benefits generally not allowed at same time

Q           Can employees collect workers’ compensation at the same time as unemployment or state disability insurance payments?

The short answer is no.

In Wisconsin, workers’ compensation, unemployment benefits, and disability insurance are distinct forms of support, each designed to address specific situations. Workers’ comp provides financial and medical benefits to employees who suffer work-related injuries or illnesses. The benefits may include coverage for medical expenses, wage loss, and rehabilitation services. Workers’ comp is typically designed to replace a portion of lost wages while the employee is unable to work because of an injury.

“Unemployment” in Wisconsin refers to unemployment insurance benefits, a state-run program administered by the Department of Workforce Development (DWD) designed to provide temporary financial assistance to eligible workers who have lost their jobs through no fault of their own. These payments aim to help individuals cover basic living expenses while they search for new employment.

Unlike some states, Wisconsin doesn’t offer a state disability insurance program. Although Wisconsin doesn’t have state disability insurance, many people look to federally funded Social Security Disability Insurance (SSDI). Notably in most states, workers’ comp benefits reduce SSDI benefits. In Wisconsin, the reverse is true: SSDI benefits reduce workers’ comp benefits.