Collecting Unemployment Compensation After Your Workers’ Compensation Case

by Karl Voigt

Many of our clients ask us if they can collect unemployment compensation after their workers compensation cases settles or closes.

From the workers’ compensation perspective, our clients may not want to collect unemployment compensation while collecting workers’ compensation. This is because the workers’ compensation insurer is allowed a credit for any unemployment compensation a Claimant receives while collecting workers’ compensation. Workers’ compensation benefits are not taxable, but unemployment compensation income is taxable.

However, if and when their workers’ compensation case settles, some clients are still able to file an unemployment compensation claim.

So, can you collect? The answer is … maybe.

Unfortunately, the answer depends on the language of your workers’ compensation settlement agreement. There is recent appellate case law that holds that, when an injured worker’s settlement includes a resignation from employment, he is not entitled to collect unemployment compensation. Many Employers will require a resignation letter, even if claimant was laid off or fired while the case was in litigation. If you have resigned, the courts have more than suggested that you cannot collect unemployment compensation.

7 thoughts on “Collecting Unemployment Compensation After Your Workers’ Compensation Case

  1. What if, in the paperwork it states that they had no work available within my restrictions, therefore want me to sign a resignation???


  2. I’ve been receiving workman’s comp I was recently let go last Tuesday and received a letter on that Thursday terminated my job I’m still on workman’s comp do I appt for unemplyment or do I need to wait until I’m off workman’s comp thank you bobbi proffitt


  3. My claim has settled, they fired me because I could not work. I returned to another job almost a year later it is contract work and I am sometimes laid off will I have to report settlement as income or be restricted from receiving unemployment.


  4. what if your employer keeps giving you the run-around and stringing you along trying to mess you up on your workers compensation like my boss is doing but yet won’t admit it. I myself have never had to do workers compensation so I don’t know what all the stipulations are and I’m at a loss for what to do.


  5. Ive worked fir 27 years and was hurt 2 years ago at work. I just settled my case for pennies on the dollar. The company I worked for is no longer in service and I never received a pink slip or letter. Can I apply for unemployment if there’s nothing in my settlement saying I can’t?


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