Can I Work Another Job While on Short Term Disability?

Short-term disability is a valuable benefit that can provide employees with income replacement in the event of an off-the-job accident or illness. However, many employees may wonder if they are allowed to work another job while receiving short-term disability benefits.

In this article, we will explore how short-term disability works and how it interacts with work, as well as whether or not an employee can work another job while on short-term disability.

Understanding Short-term Disability and Its Benefits

Short-term disability is an income replacement benefit that provides a percentage of pre-disability earnings on a weekly basis when employees are out of work on a disability claim. It typically covers off-the-job accidents and illnesses that workers’ compensation would not cover.

Short-term disability benefits are designed to provide financial support to employees during a temporary disability, when they are unable to work and earn their regular income.

How Work and Disability Interact

Generally, employees are not allowed to work during the period in which they are receiving short-term disability benefits. This is because short-term disability benefits are intended to replace income that an employee would have earned from working.

Can I Work Another Job While on Short Term Disability?

Short-term disability is an income replacement benefit that offers a percentage of pre-disability earnings on a weekly basis when employees are out of work on a disability claim. This type of disability insurance typically covers off-the-job accidents and illnesses that workers’ compensation would not cover.

Many people wonder if it is legal to work another job while on short-term disability. The answer is that it depends on the specific disability program that the employee is enrolled in.

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Some programs allow employees to work part-time while others do not. It’s important to check the terms of the disability policy to determine whether it permits or prohibits working another job while on short-term disability.

When considering whether to work or not while on short-term disability, employees must determine if they are physically and mentally able to perform the responsibilities of their second job. Employees should also consider any limitations set by their disability policy, including the number of hours allowed for work, and whether the employer is authorized to deduct wages from the disability benefits.

It’s crucial to understand the limitations and conditions set by employers regarding working on short-term disability to prevent losing the benefits. Some disability programs may require the employee to report all earnings from the second job, while others consider these earnings as wages that reduce the disability benefits.

It’s important to comply with the disability policy’s terms and conditions to avoid violating any regulations and losing the benefits.

Remember that it is crucial to understand the terms and conditions of short-term disability before considering working another job, to avoid breaking any regulations and to preserve the benefits.

How to Keep Your Benefits While Working?

Short-term disability is a crucial income replacement benefit for employees who have suffered from off-the-job accidents or illnesses that are not covered by workers’ compensation. If you are entitled to this benefit, you might be concerned about whether you can work while you are on short-term disability.

Fortunately, it is possible to keep your benefits while working if you comply with certain guidelines. Below are some tips:

Research and Understand Your Short-term Disability Policy

The first step to keeping your benefits is understanding the rules and regulations of your short-term disability policy. Review your policy documents to determine if there are any restrictions on working.

Some policies may not allow you to work at all, while others may permit you to work part-time or in a different role.

Communicate with Your Employer and Insurance Carrier

To ensure that you comply with your policy, communicate with your employer and insurance carrier. Let them know that you plan to work while you’re on short-term disability and confirm that it is allowed.

Ask them to provide you with the specifics of what constitutes acceptable work, such as the number of hours or type of work you’re allowed to perform.

Be Honest About the Work You Are Doing

Be transparent about your work and report any income earned while you’re on short-term disability. Failure to do so may result in a reduction or loss of benefits.

Keep records of your earnings and provide them to your insurance carrier as requested. If you are unsure about whether a specific type of work is acceptable, ask your employer or insurance carrier before starting.

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Be Prepared to Prove That You Are Following the Rules

If your employer or insurance carrier requests proof that you are complying with the rules, be ready to provide it. Keep a log of your work hours and duties, copies of your pay stubs, and any correspondence with your employer or insurance carrier regarding your work while on short-term disability.

Remember, violating the rules of your short-term disability policy can result in the loss of your benefits. By being honest, communicating with your employer and insurance carrier, and complying with the rules, you can keep your benefits and continue to work.

Exceptions to Working While on Short-term Disability

It is possible to work while receiving short-term disability benefits, but there are some exceptions that you need to consider.

When Your Employer Does Not Allow You to Work When on Short-term Disability

While it is legal to work while on short-term disability benefits, some employers may not allow it. Before you start working, be sure to check your employee handbook, collective bargaining agreement, or contact your human resources department to learn about your company’s policy on working while on short-term disability.

When Your Medical Condition or Disability does not Allow You to Work

If your medical condition or disability does not permit you to work, then you should not work while receiving short-term disability benefits. If your medical condition worsens because you started working, your benefits may also be affected.

Consult with your doctor or healthcare provider before deciding to work while on short-term disability benefits. They can provide you with guidance on whether or not you are capable of working while receiving benefits.

What Happens if You Work While Receiving Short-term Disability Benefits?

If you are receiving short-term disability benefits and decide to work, it can impact your benefits. You should consult your plan administrator to see how much work is allowed while receiving the benefits, as each short-term disability plan has its own specific rules.

Working may also affect your ability to continue receiving benefits. If you work while receiving disability benefits and earn more than the allowed amount, your benefits may be reduced or discontinued.

You may also be required to pay back any overpayment of benefits.

It’s important to note that if you are able to work, you may not be eligible for short-term disability benefits in the first place. Short-term disability benefits are typically designed for individuals who are unable to work due to a qualifying illness, injury or medical condition.

Legal Implications of Working While Receiving Short-term Disability Benefits

If you work while receiving short-term disability benefits and fail to report your earnings, it could result in legal issues. Depending on the laws in your state, you could be charged with insurance fraud, which is a serious offense that can result in hefty fines and even jail time.

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It’s important to understand the terms and conditions of your short-term disability plan before returning to work. Ensure that you report any earnings accurately and disclose any changes in your work status to your plan administrator.

What Happens if You Get Injured While Working with Short-term Disability?

If you get injured while working while receiving short-term disability benefits, you may be able to file a workers’ compensation claim for the new injury. Workers’ compensation provides benefits like medical treatment and wage replacement for employees who are injured or become ill as a result of their job.

However, if the new injury is not related to your previous medical condition, it may not be covered by your short-term disability plan. Consult your plan administrator to understand your specific coverage and how to proceed if you are injured while working.

Frequently Asked Questions

What Are the Short-term Disability Benefits I Can Receive While on Disability?

Short-term disability provides a weekly percentage of pre-disability earnings as an income replacement benefit when employees are out of work on a disability claim, covering off-the-job accidents and illnesses that workers' compensation would not cover.

What Steps Should I Take to File for Short-term Disability Benefits?

To file for short-term disability benefits, you should first inform your employer, check if you qualify for the benefits, gather medical evidence, complete necessary forms, and submit them to the insurance company.

How Much Money Will I Get While on Short-term Disability?

Short-term disability benefits usually provide a percentage of pre-disability earnings on a weekly basis, but this percentage and amount given depends on the plan.

How Long Can I Receive Short-term Disability Benefits?

Short-term disability usually covers medical conditions or injuries that leave employees unable to work for a limited period, usually 12 weeks or less, but this can vary depending on the policy and state regulations.

Do I Need an Attorney in Case My Short-term Disability Benefits Are Denied?

While you may seek legal help in cases of denied short-term disability benefits, it is usually not necessary to have an attorney to appeal the decision.

How Do I Return to Work After Short-term Disability?

Before returning to work after short-term disability, communicate with your employer about accommodations, return-to-work plans, and any necessary documentation to ensure a smooth transition back to work.

Conclusion

It is possible to work another job while on short-term disability, as long as the duties of the other job are substantially different from your job and your insurance policy has an “own occupation” definition of disability. However, it is important to do so legally and carefully, as short-term disability does not offer any direct job protection and you can be legally fired from your job while on leave.

References

If you are receiving short-term disability benefits, the question of whether you can work another job while on disability may arise. The answer to this depends on the type of coverage you have and the definition of disability in your insurance policy.

If your policy has an “own occupation” definition of disability, you may be able to work another job while on disability and still collect benefits as long as the duties of the other job are substantially different from your job. However, if your policy has an “any occupation” definition, you may not be able to work another job while on disability.

It is important to note that if you work another job while on disability, your earnings may impact the amount of benefits you receive. Disability benefit recipients who work must keep their earnings inside the Substantial Gainful Activity (SGA) parameters set by the Social Security Administration (SSA).

If you are unsure about whether you can work another job while on short-term disability, it is best to consult with your insurance provider or a workers’ compensation lawyer.

Lora Turner
 

Lora Turner is an Experienced HR professional worked with the large organizations and holding 15 years of experience dealing with employee benefits. She holds expertise in simplifying the leave for the employee benefits. Contact us at: [email protected]