Can I collect unemployment after workers' comp settlement in New York?
I just received a lump sum workers' compensation settlement of $47,000 for a back injury I got at my warehouse job last year. The settlement includes compensation for lost wages and medical expenses. Now I'm wondering if I can file for unemployment benefits since I'm still unable to return to my previous job and looking for work that accommodates my physical limitations. Has anyone been in this situation? Will the NYS Department of Labor consider the workers' comp settlement as income that disqualifies me from UI benefits?
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Madison Allen
You can potentially collect unemployment after a workers' comp settlement, but there are specific rules. The NYS Department of Labor looks at whether you're able and available for work, not just the settlement itself. Since you mention you're looking for accommodating work, that's good. However, if any portion of your settlement was specifically for future lost wages (as opposed to past wages or medical), that could affect your weekly benefit amount.
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Katherine Harris
•Thanks for the info! How do I know what portion was for future wages vs past wages? The settlement paperwork just shows the total amount.
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Joshua Wood
i got workers comp settlement 2 years ago and was able to get unemployment after but had to wait like 6 weeks for them to review everything. they asked for all my settlement documents
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Katherine Harris
•Did they reduce your weekly benefit amount at all because of the settlement?
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Joshua Wood
•no they didnt reduce it but mine was mostly for medical expenses not lost wages
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Justin Evans
The key issue is demonstrating that you're physically able to perform some type of work and actively seeking employment. When you file your UI claim, you'll need to report the workers' comp settlement. The NYS Department of Labor will likely put your claim into adjudication to review the settlement terms. Make sure you have documentation showing you're cleared to work with restrictions and that you're actively job searching within those restrictions.
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Katherine Harris
•I do have a doctor's note saying I can work with lifting restrictions. Should I include that when I file my claim?
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Justin Evans
•Definitely include that medical clearance. It shows you meet the 'able to work' requirement even with restrictions.
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Emily Parker
I'm so confused about this whole process! I thought workers comp and unemployment were completely separate things. Can you really get both? What if they find out about the settlement later - will I have to pay back the unemployment?
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Madison Allen
•They are separate programs, but NYS Department of Labor needs to know about any settlements to ensure there's no double compensation for the same time period. Being honest upfront prevents overpayment issues later.
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Ezra Collins
I had a nightmare trying to reach NYS Department of Labor to discuss my workers comp settlement situation. Spent weeks calling and either getting busy signals or being disconnected after waiting on hold. Finally used a service called Claimyr (claimyr.com) that got me through to an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. The agent was able to explain exactly how my settlement would affect my UI claim and walked me through the documentation I needed to submit.
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Katherine Harris
•How much did that service cost? I'm already tight on money after being out of work.
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Ezra Collins
•It was worth it to get accurate information directly from NYS Department of Labor rather than guessing. The peace of mind knowing I was doing everything correctly was valuable.
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Victoria Scott
THE SYSTEM IS RIGGED!! They make it impossible to get straight answers about anything. You get hurt at work through no fault of your own, fight for months to get a settlement, then they make you jump through more hoops just to get unemployment while you look for new work. It's ridiculous!
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Benjamin Johnson
•I feel your frustration but the rules exist to prevent people from double-dipping on benefits for the same time period.
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Benjamin Johnson
Just wanted to add that you should definitely report the settlement when you file. I know someone who didn't mention their workers comp settlement and got hit with an overpayment notice months later. NYS Department of Labor eventually finds out about these things through data matching.
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Katherine Harris
•Good point. Better to be upfront about everything from the start. I'll make sure to have all my settlement paperwork ready when I file.
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Sarah Ali
I went through something similar last year with a shoulder injury settlement. The key thing I learned is that NYS Department of Labor will want to see a breakdown of your settlement showing what portion was for past lost wages vs future wages vs medical expenses. If your settlement agreement doesn't specify this breakdown, you might need to contact your workers comp attorney to get a clarification letter. In my case, most of my settlement was for medical expenses and past wages, so it didn't affect my weekly UI benefit amount. The process took about 4-6 weeks for them to review everything, but I was eventually approved. Make sure you're actively job searching and document everything - they'll ask for proof that you're looking for work within your physical restrictions.
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Lucas Notre-Dame
•This is really helpful Sarah! Did your workers comp attorney charge extra for providing that breakdown letter, or was it included in their services? I'm trying to figure out if I need to budget for additional legal costs on top of everything else.
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Amara Adeyemi
•@Sarah Ali Thanks for sharing your experience! That s'really detailed advice. I m'curious - when you were documenting your job search within physical restrictions, what kind of evidence did NYS DOL want to see? Were online applications enough, or did they need something more specific showing you were only applying to jobs that matched your lifting restrictions?
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Aisha Jackson
•@Sarah Ali This is exactly the kind of detailed guidance I was hoping to find! I didn t'realize the settlement breakdown was so important. My attorney hasn t'mentioned anything about providing a clarification letter, so I ll'definitely need to ask about that. It sounds like being proactive about getting the proper documentation upfront could save me weeks of delays in the review process. Did you have to provide the breakdown letter when you initially filed your UI claim, or only after they requested it during their review?
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NebulaKnight
•@Sarah Ali This breakdown you mentioned is really crucial information! I m'in almost the exact same situation as Katherine - just got my settlement and wasn t'sure about the unemployment process. When you contacted your workers comp attorney for the clarification letter, how long did it take them to provide it? I m'wondering if I should get this sorted out before I even file my UI claim to avoid delays, or if it s'something I can handle during the review process. Also, did NYS DOL accept the attorney s'breakdown letter as sufficient documentation, or did they require additional verification?
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