WI Backs Off SSDI/Workers’ Comp Offset Plan

In a case we’ve been watching closely, on September 19, Wisconsin’s Department of Workforce Development backed off its controversial plan to offset SSDI and workers’ compensation benefits.

During the administration of Gov. Scott Walker, DWD asserted in a  proposal that disability payment recipients who applied for unemployment insurance were probably “double-dipping” and committing “fraud.” Then, in July 2024, U.S. District Judge William Conley ruled that the jobless pay ban violated the Americans with Disabilities Act and the Rehabilitation Act.

After several months of foot-dragging, the judge ordered DWD to pay jobless benefits to eligible applicants who were denied because they received SSDI payments between Sept. 7, 2015 — when the SSDI-unemployment ban law was last revised — and July 30, 2025. Judge Conley also ordered DWD to pay back people who had collected jobless pay but then ordered to pay back the money because they were on SSDI.

“This is wonderful news for everyone involved and for the state of Wisconsin in general, disabled or non-disabled,” said lawyer Victor Forberger.

Forberger has specialized in representing people whose unemployment insurance claims have been rejected. He was one of the lawyers who sued DWD in federal court in 2021 to overturn the state law banning jobless pay for SSDI recipients.

“What’s happening right now is discrimination. Full stop,” Sen. Kristin Dassler-Alfheim (D-Appleton) remarked. “That’s why the federal judge ruled against it, that’s why Representative Sinicki and I have proposed legislation to remove it from state statute, and I’m glad to see that DWD has put forth this amendment” removing the offset.260

SSDI Basics

At first blush, the former governor’s assessment appears correct. Usually, when applicants claim workers’ compensation and SSDI, the injury or illness is the same in both applications. However, and this is a key point, the payments come from different sources. SSDI is a taxpayer-funded program, and workers’ compensation is an insurance payments program.

Furthermore, the eligibility requirements for each program are significantly different. Qualifying for SSDI is a combination of:

• Work History: Most applicants must have worked in Social Security jobs for at least five out of the previous ten years. Special rules apply to young applicants.
• Medical Condition: The applicant must have a severe medical condition that precludes engagement in substantial gainful activity (SGA). SGA is defined as working at least 20 hours per week and earning over $1,470 per month (as of 2023). That medical condition must be expected to last for at least 12 months or result in death.
• Age: The applicant must be under 67. Furthermore, the applicant must not be receiving retirement or survivor’s benefits from Social Security and must have a Social Security Number.

SSDI benefits usually include monthly cash (the amount depends on the severity of the disability and a few other factors) and Medicaid eligibility.

Workers’ Compensation Basics

A Tampa workers’ compensation lawyer can obtain job injury benefits, mostly lost wage replacement and medical bill payment, if the applicant has a job-related injury or illness that results in a temporary or permanent disability.

Most applicants receive two-thirds of their average weekly wage for the duration of their temporary or permanent disabilities. The AWW includes regular cash compensation as well as irregular or non-cash compensation, such as overtime opportunities and matching retirement account contributions.

The medical payment benefit applies to all reasonably necessary medical expenses, a category that includes medical treatment bills as well as ancillary expenses, such as transportation, prescription drugs, and medical devices.

Connect With a Thorough Hillsborough County Lawyer

Injury victims are entitled to important financial benefits. For a confidential consultation with an experienced workers’ compensation lawyer in Tampa, contact Kobal Law. The sooner you reach out to us, the sooner we start working for you.