Why Are Workers’ Compensation Benefits Better Than Disability Benefits?

On-the-job injuries happen. Sometimes, no matter what safeguards are in place, accidents are unavoidable. However, that can leave you in a difficult situation.

When you’re dealing with a work-related injury or illness that prevents you from working, the financial stress can feel overwhelming. Without an income, you’ve got bills piling up, creditors sending threatening letters, and utility companies threatening to turn off your power or water. It’s an incredibly frustrating place to be.

That’s where benefits like workers’ compensation and disability can help. But if you’re wondering what pays more, workers’ comp or disability, you’re not alone.

The answer isn’t just about dollars, either. You need to know what each program covers and how it supports you during recovery. This guide will explore workers’ compensation and disability to help you understand the best path forward.

Work-related injuries: The stats

Work-related injuries run the gamut from minor cuts and scrapes to those that linger for years or even a lifetime. Here are a few statistics from the US Bureau of Labor Statistics. Note that these are from 2023, the most recent year for which statistics are available:

• 6 million workers suffered nonfatal workplace injuries.
• Over 5,000 workers were killed on the job, which is a drop of 3.7% from 2022.
• Healthcare and social assistance saw the most workplace injuries, followed by manufacturing, retail, transportation/warehousing, accommodation/food services, and construction.
• The most common workplace injuries among US workers were:
• Repetitive motion injuries (carpal tunnel, for instance)
• Slip and fall injuries
• Strains
• Cuts
• Collisions and crashes

What makes workers’ comp stand out?

Workers’ compensation benefits are designed specifically for work-related injuries or illnesses. If you’re hurt on the job, workers’ comp pays for your medical treatment, lost wages, and even vocational rehabilitation if you need to switch careers. In some cases, you may be able to return to work gradually, resuming lighter duties at first and then increasing your responsibilities as you recover.

The system is no-fault, which means you don’t have to prove your employer was negligent; it is just that your injury happened while you were working. Your employer’s workers’ compensation insurance policy pays for everything; nothing comes from the company’s pockets.

In contrast, disability benefits, whether we’re talking about short-term or long-term, cover injuries or illnesses that may not be job-related. The key thing is that your injuries must prevent you from working (and earning an income from that work).

With that said, they’re not all that similar. Here’s a quick snapshot:

• Higher coverage for lost wages: Workers’ comp generally replaces around two-thirds of your average weekly wage, tax-free. In most cases, that’s more than disability benefits would pay.
• Medical expenses included: Workers’ comp covers all your medical bills related to your injury. Disability benefits? Not so much.
• Easier to qualify: You’re eligible for workers’ comp as long as your injury happened. Disability benefits often require more documentation and approval, which can take weeks or even longer.

What about short-term disability?

You might ask, “What pays more: workers’ comp or short-term disability?” The answer is almost always workers’ comp. Short-term disability policies usually cap payments at a percentage of your salary, and you might need to wait for a certain period (known as an elimination period) before you start receiving those benefits.

Of course, there’s a lag with workers’ comp benefits, but that can vary by state. For instance, under Delaware workers’ compensation law, there’s a four-day period for wage replacement but no waiting period for medical benefits. Contrast that with Florida, where you might have to wait 21 days for benefits.

Plus, short-term disability doesn’t cover medical expenses. That’s money you’ll have to pay out of pocket unless you have excellent health insurance. On the other hand, workers’ comp takes care of all job-related medical costs, from surgery to physical therapy, and even includes medications.

Can you get disability after a workers’ comp settlement?

Wondering, “Can I get disability after a workers’ comp settlement”? Yes, it’s possible to qualify for Social Security Disability Insurance (SSDI) after settling a workers’ comp claim, but there’s a catch. The Social Security Administration considers your workers’ comp benefits when calculating SSDI payments. This offset could reduce your monthly disability check.

The better question is: do you need disability benefits after a workers’ comp settlement? If your workers’ comp claim was substantial and your injury is permanent, you might be covered financially without tapping into SSDI.

Why workers’ comp is often the better option

Workers’ compensation is usually the more comprehensive and reliable safety net if you’re injured on the job. Here’s why:

• It’s tailored for work injuries: Workers’ comp is built around the idea that your job caused your injury, so it’s designed to help you recover and get back to work. In most cases, that’s the goal (returning to work full-time and fully healed). However, it will also cover you financially (medically and income-related) if you’re permanently disabled due to a workplace injury or disease.
• No out-of-pocket medical costs: You don’t have to worry about co-pays, deductibles, or surprise bills. That’s a lot of peace of mind. Imagine knowing every doctor’s appointment, prescription, or medical device related to your injury is covered. How much easier would you breathe?
• Job security: Filing a workers’ comp claim often provides more protection against job loss than taking disability leave. Again, workers’ comp is specifically designed to cover work-related injuries or illnesses. There are laws in place that prevent things like employer retaliation. With general disability leave, job security isn’t guaranteed.

Tips for maximizing your benefits

Whether you’re pursuing workers’ comp, disability, or both, here’s how to strengthen your claim:

1. Report your injury immediately: Don’t wait. Timely reporting is so essential for workers’ comp claims.
2. Keep detailed records: Medical records, pay stubs, and accident reports can all support your case.
3. Consult a lawyer: An experienced attorney can guide you through the process and ensure you get the benefits you deserve.

How Silverman, McDonald & Friedman can help

At Silverman, McDonald & Friedman, we know the difference between workers’ compensation and disability benefits can feel confusing. We’re here to help you navigate the system, fight for your rights, and help you recover and move forward.

If you’re dealing with a work injury or considering options, contact us today for a free consultation.