Los Angeles, CA asked in Employment Law, Workers' Compensation and Public Benefits for California

Q: How does it work when you have to repay the state disability you've received from a workers compensation settlement?

How does it work when you have to repay the state disability you've received from a workers compensation settlement? Does the repayment start from when you file workers compensation or would you have to repay everything from when you first began receiving disability? Also some of the disability I'm receiving is from another job. Would I be expected to pay that portion back as well?

1 Lawyer Answer
James L. Arrasmith
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Answered

A: Under California law, when you receive a workers' compensation settlement, you may be required to repay the state for the disability benefits you received during the period covered by the settlement. This is known as the "SDI reimbursement" process. Here's how it typically works:

1. Repayment period: The repayment usually covers the period from the date of your work-related injury or illness until the settlement date. You generally don't have to repay disability benefits received before the date of your injury or illness that led to the workers' compensation claim.

2. Notification: The Employment Development Department (EDD) should send you a notice informing you of the amount you need to repay from your settlement.

3. Lien on settlement: The EDD may place a lien on your workers' compensation settlement to ensure repayment of the disability benefits.

4. Repayment process: You or your attorney should inform the workers' compensation insurance carrier about the SDI reimbursement requirement. The insurance carrier is then responsible for sending the repayment amount directly to the EDD.

Regarding disability benefits received from another job:

If the disability benefits you received were for a separate, non-work-related condition or injury, you likely won't be required to repay those benefits from your workers' compensation settlement. However, if the other disability benefits were also related to a work injury or illness, you might need to repay a portion of those benefits as well.

It's important to note that each case is unique, and the specific requirements for repayment may vary depending on your individual circumstances. It's best to consult with a workers' compensation attorney or contact the EDD directly for more information and guidance on your specific situation.

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