It
happens with some frequency, a client will come into the office
having lost on his or her initial claim or reconsideration and (1)
has applied for and is receiving unemployment
insurance benefits
or (2) ask, “Can I apply for unemployment while the appeal is
pending?”
This
is a issue that continues to cause problems. If you are filing for
Social Security disability, you are stating that you have been unable
to work for at least twelve months, or that you anticipate that
you'll be unable to perform substantial work activity for at least
twelve months, due to a mental and/or physical impairment. When you
file for unemployment, you are stating you are ready and available to
perform work should you be able to find a job that fits your work
skills. Based on the foregoing, the application for unemployment
benefits with a pending application for social security disability
benefits suggests an apparent inconsistency: a claim that you are
able, available, and actively seeking work while concurrently
claiming an inability to work as a result of disability.
I
have spoken to other attorneys who practice in this area of the law.
From these discussions, it is clear that there is no consensus of
opinion on what advise should or should not be given. Some of the
attorneys I talk with advise their clients against collecting
unemployment benefits when applying for Social Security disability,
because Administrative Law Judge have been known to have difficulty
with the issue for people applying for both benefits at the same
time.
Other
attorneys point out that some client have no funds left to make ends
meet and desperately need the unemployment benefits, and that that is
the only reason they apply. They attempt to deal with the issue at
the hearing. Others point out that there are situations where an
older person could be legitimately entitled to disability benefits
even with receipt of unemployment, e.g. if a person is in a social
security case is limited to sedentary work ( a very light type of
work activity), but because of his age, past job skills, and
education level, isn't expected to learn how to do a sedentary job,
he should be approved for disability benefits. In that case, there
is the possibility that he could find a sedentary job he could work,
even though under the social security law, he is disabled. In that
case, both application are correct.
The
position of the Social Security Administration. While it frowns upon
applicants receiving unemployment benefits, it will not always
prevent a claimant from being found disabled.
This
situation was addressed by the Social Security Administration’s
Chief Administrative Law Judge Frank A. Cristaudo in his memoranda of
November 16, 2006 and August 9, 2010. Chief Judge Cristaudo noted it
is often uncertain whether the Social Security Administration will
find a person disabled, and the decision making process and waiting
for disability benefits is quite lengthy. The Chief Judge stressed
that receipt of unemployment benefits is only one of many factors
that must be considered in determining disability.
The
United States Supreme Court addressed a similar situation in the 1999
case of Cleveland v. Policy Management Systems Corp, 119
S.Ct. 1597 (1999) (This has been incorporated in SSR 00-1c).
Justice Breyer, in evaluating a concurrent Americans with
Disabilities Act claim along with an application for Social Security
Disability benefits ruled that the application for Social Security
Disability benefits would not prevent recovery under the ADA. The
Court further noted that being found disabled by the Social Security
Administration involves a five-step process with a number of factors
considered. The Court also noted that the Social Security
Administration can grant benefits to individuals who are not only
able to work, but are working.
Is
this confusing—Yes???
What do I advise? I inform all disability claimants who were receiving unemployment benefits, that the decision to file for disability is their choice however, they needed to consider the potential pitfalls of taking unemployment benefits while they wait for a disability decision. I give the same advise to a client who has filed and now wants to apply for unemployment. There are judges who take the issue very seriously. I have had judges offer a new on-set date which happen to be the date the unemployment ran out. I have had judges question the client on the apparent contradiction exists in applying for or receiving both unemployment benefits and SSDI benefits.
There
is an appearance that the claimant has trouble with the truth, when
he files both applications, i.e. were you telling the truth on the
unemployment application or on the application for disability?
My
experience has been that judges understand the economics of the
system delays. They realize that there are people applying who could
not support themselves for the time it took to obtain a hearing
without applying for unemployment. The Judges (most) focus on the
alleged impairments and spend time determining if they fit the
requirements for an award of benefits, and very little time on the
collateral issue.
I
do not feel that I have ever lost a case based upon this issue.
Still, it brings into a case another obstacle to obtain benefits. If
it is not absolutely necessary to apply for unemployment, it is
probably a good idea not to make the application.
If
you do get unemployment benefits pending an award from social
security, especially if the award period infringes on the term of the
unemployment benefits, there may be a repayment issue for the period
of double payment.