If you’re facing a work-related injury or job loss, there are financial options you can turn to for support. Workers’ compensation and unemployment benefits are great resources to help employees in different circumstances while they’re not working.
For some people, utilizing these benefits is the only way to help compensate for lost wages from being out of work for whatever reason. Understanding the differences between these two financial programs will help you determine which benefits you qualify for and which suits your situation.
Key Differences Between Workers’ Compensation Benefits and Unemployment Benefits
Unemployment and workers’ compensation benefits are two different programs for two purposes. They operate under strict regulations, so knowing their differences is critical to setting yourself up for success.
Eligibility Requirements
Workers’ compensation benefits are offered to employees with a job-related injury or illness. These benefits are for injured workers, no matter who is at fault. To be eligible for workers’ comp, you must:
- Be an employee, not an independent contractor
- Have to have an injury or illness that happened during employment
- Seek medical care for the injury as prescribed by a healthcare professional
- Report the injury within the specified timeframe outlined in your company’s rules
- Follow all the medical treatment plans and abided by any restrictions
- Attend independent medical examinations when required
Unemployment benefits are available to workers who:
- Lost their job through no fault of their own
- Are actively seeking a new position
- Meet state-specific earning requirements
- Register with the state employment service
- Are physically able to work and aren’t injured severely
- Maintain detailed records of their job searching efforts, including applications, interviews, and outcomes of interviews
Benefits Provided
If you’re applying for workers compensation benefits, you can receive benefits such as:
- Medical benefits for workplace injury treatment
- Temporary Total Disability payments (usually ⅔ of your average weekly pay)
- Permanent Partial Disability benefits
- Death benefits for surviving dependents
- Vocational rehabilitation services
- Travel reimbursement for medical appointments
- Ongoing care for work-related chronic conditions
- Coverage for medical equipment and prescriptions
For those thinking about collecting unemployment to assist them financially, these benefits usually provide:
- Job search assistance
- Weekly monetary benefits based on your previous earnings
- Access to job training programs
- No medical benefits
- Limited duration of benefits, usually up to 26 weeks
- Access to job fairs and employment workshops
- Career counseling services
Funding Source
Two separate entities fund workers’ compensation and unemployment benefits. Workers’ compensation funding comes from:
- Self-insurance programs for qualified large employers
- Employer-paid insurance premiums
- State-managed insurance funds in some areas
- Special assessment fees for high-risk industries
When you receive unemployment benefits, the funding comes from:
- Federal and state government contributions
- Employer payroll taxes
- Additional funding during economic emergencies
- Special assessment fees during high unemployment periods
When to Choose Workers’ Comp vs. Unemployment Benefits
Choosing between unemployment and workers’ compensation benefits will depend on your situation.
Work-Related Injuries
Generally, workers’ compensation is the ideal choice when you suffer a work-related injury. This includes situations when:
- Your injury or illness is directly related to your job
- You require temporary or permanent disability benefits
- You need ongoing medical treatment
- You need rehabilitation services before returning to work
- Your injury prevents you from performing your previous job duties
- You’ve developed an occupational disease
- Your injury resulted from a specific workplace accident
- You require modifications to your workspace or duties
Job Loss Due to Injury
Collecting unemployment benefits might be more appropriate when:
- Your injury is keeping you from returning to work in your previous role
- Your workers’ compensation claim has been denied
- You’ve been medically cleared to work, but your employer can’t accommodate your limitations
- You’re capable of performing other types of work
- You’ve exhausted your workers’ compensation benefits but still can’t go back to your job
- You’ve completed vocational rehabilitation but need time to get a new position
Combining Benefits
You might be eligible for both if you want to collect unemployment benefits and workers’ compensation. However, being eligible for both doesn’t automatically mean you get both. There are some restrictions:
- Benefits can’t be collected at the same time in most states
- The total amount received is subject to the offset principle
- You have to meet specific criteria for each program individually
- Legal guidance is often necessary to navigate through a claims process
- Coordination between programs requires careful timing and specific documentation
- Careful planning is needed to maximize your benefits
- Some states have rules about benefit coordination
Since getting workers’ comp and unemployment can be tricky, it’s best to hire an experienced attorney to help you navigate these legal processes.
Why You Need a Lawyer for Your Workers’ Compensation Claim
As an injured worker, the last thing you need is the additional stress of figuring out your workers’ compensation claim. That’s where a Chicago workers’ compensation lawyer comes into play.
Understanding Your Rights
Our workers’ comp lawyers are there to help explain your rights. We will:
- Ensure you understand your legal rights and obligations
- Guide you through the workers’ compensation claims process
- Identify the potential benefits you’re entitled to
- Ensure you meet all the filing deadlines
- Advise on third-party claims
- Protect your interests from start to finish
- Review all insurance documentation
- Help coordinate with other programs like unemployment
Maximizing Benefits
Insurance companies are known to do whatever they can to minimize their payout. A workers’ comp attorney from our team will help you maximize your benefits by:
- Accurately calculating your average weekly pay
- Challenging improper benefit terminations
- Ensuring all your medical conditions are appropriately documented
- Identifying additional sources of compensation you might not have thought of
- Negotiating favorable terms for you
- Addressing pre-existing condition issues
- Securing vocational rehabilitation benefits
- Protecting your future medical rights
When you have a workers’ compensation attorney on your side, you can focus more on recovery, knowing they’ll do everything to ensure you get the benefits you’re entitled to.
Handling Disputes
Unfortunately, there are times when workers’ comp claims are denied. Our lawyers can help you when dealing with:
- Denied claims
- Return-to-work conflicts
- Disputed medical treatments
- Appeals of adverse claims
- Insurance company tactics to minimize benefits
- Settlement negotiations
- Medical provider disputes
- Permanent disability ratings
It’s important to remember even when you’re working with an attorney, issues might arise. When they do, they’ll be more equipped to handle them than if you were to try on your own.
Secure Expert Legal Counsel!
Rosenfeld Injury Lawyers understands the complex world of workers’ compensation. Our Chicago personal injury lawyers are prepared to navigate any challenges that arise and help guide you through the process until the end. We’ve helped hundreds of injured workers fight for workers’ compensation benefits that they deserve.
We operate on a contingency fee basis, so you can focus on recovering rather than legal fees. Let us protect your rights while you focus on healing. Calling (888)-424-5757 to book a free consultation with a workers’ compensation attorney.