You can be worried about your finances after becoming sick at work or getting hurt at work, which makes it necessary for you to miss work. You have two options in this situation: short-term disability and workers’ compensation, both of you can apply with the help of a disability attorney.
Some businesses provide their employees with these two very distinct perks. They are intended to protect the employee from any potential financial hardship brought on by an accident or illness.
Contrary to popular belief, the two policies are not interchangeable. We examine the two in-depth in this post and the functions they fulfill.
How does workers’ compensation differ from short-term disability, and what is a short-term disability?
An employee benefits employers choose to offer is short-term disability. The employee often covers all or a portion of the perk. Employees with short-term disabilities are protected from illnesses or accidents unrelated to their jobs.
Employees who cannot work due to treatment or recovery are given income replacement benefits. The insurance provider under the company’s employee benefit plan is where the short-term disability benefits are obtained.
On the other hand, employees who suffer injuries at work are eligible for workers’ compensation benefits. They also hold true for employees who contract illnesses or diseases as a result of their employment. Workers’ compensation programs, in contrast to short-term disability benefits, are not elective. Any employer with three employees or more is required to offer workers’ compensation insurance.
The following are some other ways the two are different:
- Compared to workers’ compensation coverage, short-term disability compensates a smaller portion of your wage.
- Depending on the plan, short-term disability benefits could be taxable, although workers’ compensation payouts are not.
- You can get salary loss benefits through workers’ compensation programs for up to 500 weeks. If you meet the criteria for total and permanent disability, the amount could be greater than 500 weeks. The majority of short-term disability compensation is only payable for a few weeks.
- Comparatively speaking, it will be simpler to argue against denials of workers’ compensation claims than short-term disability benefits.
With regard to actual benefits, workers’ compensation is a superior option. A workers’ compensation policy is not available to everyone, though.
Can you get benefits for short-term disability and workers’ compensation?
You typically can not obtain the two at the same time. There are a few exceptions, though. If you believe you are also entitled to short-term disability payments for the same illness or injury, speak with a disability attorney to learn more about your benefits.
