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.


Filed under Workers' Compensation

4 responses to “Collecting Unemployment Compensation After Your Workers’ Compensation Case

  1. Patty

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


  2. try taking a collection from the IRS, they”ll give you a really different
    break : )


  3. Bobbi proffitt

    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


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s