It is not uncommon for my clients to be receiving unemployment compensation during the same time period that they are seeking Social Security Disability benefits, so I often get questions about whether it harms an SSDI claim to tell one government agency, “I’m ready, willing, and able to work,” while simultaneously telling another agency, “My impairments are so severe that I cannot do any job in the regional or national economy.”
Officially, Administrative Law Judges should not be counting your receipt of unemployment benefits against you. In a November 15, 2006 memo from Chief Administrative Law Judge Frank A. Cristuado, the official policy communicated to all Social Security Law Judges was:
“[R]eceipt of unemployment benefits does not preclude the receipt of Social Security disability benefits…application for unemployment benefits is evidence that the ALJ must consider together with all of the medical and other evidence…”
(Chief ALJ Memorandum, No. 07-11, November 15, 2006.)
Judge Cristuado reiterated his position in an August 9, 2010 memorandum to all Social Security Law Judges:
“This is a reminder of the policy concerning receipt of unemployment insurance benefits. Receipt of unemployment benefits does not preclude the receipt of Social Security disability benefits. The receipt of unemployment benefits is only one of many factors that must be considered in determining whether the claimant is disabled…under the presumptions embodied in our five-step sequential evaluation process, a person can qualify for Social Security disability benefits even though he or she remains capable of performing some work. Similar logic applies to applications for unemployment benefits…it is often uncertain whether we will find a person who applies for unemployment benefits ultimately to be disabled under our rules, and our decisionmaking process can be quite lengthy. Therefore, it is SSA’s position that individuals need not choose between applying for unemployment insurance and Social Security disability benefits.”
(Chief ALJ Memorandum, No. 10-1258, August 9, 2010.)
Nonetheless, some judges do seem to care about receipt of unemployment benefits, and count it against the credibility of applicants who are simultaneously seeking benefits under both programs. Others are concerned that if an applicant’s claim is ultimately successful, they will be forced to repay all of the money they’ve received in unemployment, and they may be right: the state agencies who issue unemployment can – and sometimes do – request reimbursement for any monies paid out to individuals who are ultimately found to be “disabled” under Social Security rules.
If you are in the process of applying for Social Security benefits and receiving unemployment compensation, be sure to discuss it with your attorney so he or she is prepared to address the issue at your hearing. If you are seeking representation from a Social Security Disability attorney, Greeman Toomey, PLLC has team of experienced and competent attorneys who will work with you throughout the entire application process. Feel free to contact our experienced team at 877-332-3252 anytime for a free evaluation.
