Can You Receive Workers’ Compensation and VA TDIU Benefits at the Same Time?
CCK Law: Our Vital Role in Veterans Law
Workers’ compensation and total disability based on unemployability (TDIU) are two important benefits. They each satisfy unique needs. Workers’ compensation provides financial relief for on-the-job injuries, and TDIU is a VA benefit for veterans whose service-connected conditions prevent them from working.
A common concern veterans have is whether receiving one benefit might reduce or cancel the other. These benefits come from entirely different systems and serve distinct needs.
In this article, CCK Law will discuss:
- What workers’ compensation and TDIU are, and who qualifies
- Whether receiving both is allowed
- Why workers’ compensation does not offset TDIU payments
Understanding Workers’ Compensation and TDIU
To understand why it is possible to receive both workers’ compensation and TDIU benefits, it is important to first know what each benefit is and how they differ.
Workers’ Compensation
Workers’ compensation is a state-managed insurance program. It provides wage replacement and medical benefits to individuals who suffer injuries or illnesses during the course of their employment.
This benefit is available to both veterans and non-veterans. However, it applies specifically to civilian jobs, not military service.
Workers’ compensation is designed to cover treatment costs, compensate for lost wages, and support recovery when the medical issue is tied directly to a person’s job duties.
Total Disability Based on Individual Unemployability (TDIU)
Total Disability based on Individual Unemployability (TDIU) is a benefit provided by the U.S. Department of Veterans Affairs (VA). It allows veterans to receive compensation at the 100 percent disability rate, even if their combined service-connected disability is below 100 percent. It allows this if those conditions prevent them from securing and maintaining “substantially gainful employment.”
To qualify for “schedular” TDIU, a veteran must have either a single service-connected disability rated at 60 percent or higher, or two or more service-connected disabilities with a combined rating of 70 percent or more, with at least one disability rated at 40 percent or higher. Veterans may also qualify for extraschedular TDIU, but this is more challenging to prove.
Can You Receive Both Benefits at the Same Time?
Yes, you can receive both workers’ compensation and TDIU benefits at the same time. Moreover, these benefits will not offset each other. These two systems operate independently.
Workers’ compensation looks at civilian employment injuries, while TDIU focuses solely on whether a veteran’s service-connected disabilities make them unemployable. The separation of these two systems is key to understanding why these benefits typically don’t interfere with one another.
If a veteran qualifies for both workers’ compensation and TDIU benefits, then they can receive both in full. VA does not consider outside sources of disability income when determining TDIU eligibility.
Does Receiving Workers’ Compensation Mean a Veteran Is “Gainfully Employed”?
Whether a veteran is earning “substantially gainful employment” is the only income-related factor that might affect TDIU eligibility. This is measured against the federal poverty threshold. So, if a veteran is working and earning above that threshold, then they may not qualify for TDIU (unless their work environment is considered “protected,” which can also be difficult to prove).
However, receiving workers’ compensation does not count as gainful employment and should not be viewed as disqualifying income.
Call CCK Law
Veterans who are unable to work due to service-connected disabilities may qualify for TDIU, even if they are also receiving workers’ compensation for a separate civilian injury. These two programs serve distinct functions and do not offset one another. Understanding this distinction can help veterans access the full range of benefits they’ve earned, without fear of losing one by applying for the other.
The law around TDIU can be vague and confusing, even to VA adjudicators. If you feel that VA has made an error, you can file both administrative and court appeals.
If you need to appeal, an experienced, VA-accredited representative is highly advised. If you are a veteran who needs help with your TDIU claim or VA denied your compensation claim, then CCK Law may be able to help. Call us today at (800) 544-9144 for a free case evaluation with a member of our team.
