People who apply for disability benefits after a layoff are more likely to be only "marginally" qualified and will have a tough time getting approved.
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The Social Security Administration (SSA) provides disability benefits to people who have a medical condition that keeps them from working full-time for at least a year. When you apply for disability benefits, one of the questions the SSA will ask you is when you last worked and why you left that job. There’s no prohibition against getting disability if you were laid off, but if you were let go due to reasons unrelated to your health, it’s harder to convince the agency that you can’t work because of your medical impairment.
But if you were laid off because your health deteriorated to the point where you could no longer perform your job duties, that’s a stronger argument that you might not be able to work at all. And if you’re over the age of 50, the SSA has special rules that can make it easier to get disability benefits when you can’t make the shift to another line of work. If you’ve been laid off recently and aren’t sure whether you can go back to work, it’s important to understand how Social Security defines disability to see if you qualify for benefits.
Can You Apply For Disability If You Are Laid Off?
You can, but there are a few key things to keep in mind before you do. One is that the SSA needs to see that you have a medical impairment that keeps you from working at or above the level of substantial gainful activity for at least twelve months. So if you have a temporary condition or you go back to work full-time within one year after you were let go, it’s unlikely that you’ll qualify for disability benefits.
The other is that if you begin collecting unemployment and then apply for disability benefits, you could run into trouble. That’s because when you file for unemployment, you’re telling the government agency that you are willing and able to work, you just can’t find a job right now. But when you file for disability benefits, you’re telling the SSA that you couldn’t work at all even if a job was offered to you. Because these things can’t both be true at the same time, you’ll need to have a very convincing explanation why you said different things to different agencies.
Why Workers Apply for Disability After a Layoff
There are many reasons why workers file for disability benefits after getting laid off. Some people have been working through pain and discomfort for many years in order to make it to the next paycheck, and losing their job makes filing for disability seem like a reasonable next step. Others have lost employer-provided health care benefits, and apply for disability because it can provide access to programs such as Medicare and Medicaid. Older workers may apply for disability because they’ve worked in the same area for a long time and may be at a disadvantage in the job market compared with younger workers.
Who Has a Good Chance of Getting Disability Benefits After a Layoff?
People who are at least 50 years old and don’t have transferable skills to other jobs are probably the most likely to qualify for disability benefits after getting laid off. That’s because the SSA expects younger workers to be able to adjust to other work rather than leaving the workforce altogether, but it doesn't always expect the same of older workers.
Jobs that require physical stamina (such as server, cleaner, or construction worker) are harder for older workers to perform, and Social Security doesn’t expect you to return to a physically demanding job as you approach full retirement age. Thanks to a special set of rules known as the medical-vocational grid, older workers have a much higher rate of approval for disability benefits than younger workers do.
Regardless of how old you are, however, you’ll need to have enough medical evidence—preferably with objective testing like X-rays or CT scans—and doctors who can provide medical source statements about your limitations. If you were laid off because your condition worsened to the point that you weren’t being productive enough, for example, you may have a good shot at qualifying for benefits as long as your medical records are supportive.
How Lack of Health Care Hurts Disability Claims
Applicants who haven't regularly seen a doctor for their medical condition have a harder time convincing Social Security that they’re disabled, in large part due to a lack of comprehensive medical records. Even when the SSA acknowledges that they have a serious medical condition, the agency is more likely to think there is some other work that they can do.
Getting health care after you’ve been laid off can be very difficult, but it’s important to make the effort so that Social Security knows that you have a condition that warrants medical attention. You may be able to obtain health insurance coverage through the Affordable Care Act (“Obamacare”) marketplace, for example. Or, you may be able to get your medications refilled on a sliding scale cost basis. The SSA will want to know that you’ve tried all affordable options for health care so they know you’re serious about applying for disability and not just using it as an alternative to unemployment.
Work History Is Important After Layoffs
Social Security claims examiners and administrative law judges like to see claims with a solid work history of full-time work. It signals that the claimant is a hard worker who would rather still be working than receive disability benefits. Having a long work history makes it more likely that the SSA will believe you when you say that you can’t work anymore.
Having too many gaps in your work history can therefore suggest to a claims examiner or disability judge that you lack the motivation to work. Sometimes, however, this can work in your favor, particularly if you have mental health impairment such as bipolar disorder or schizophrenia that makes it difficult for you to hold down a regular job for an extended period of time. If this is the case, make sure to document that you were laid off due to a mental illness, perhaps with a witness letter from your former employer(s).
When to Talk to a Disability Lawyer
If you filed a disability application soon after being laid off, you may want to consider hiring a Social Security disability attorney to handle your claim. Especially during times when many people are out of work, the SSA tries to screen out as many claimants as possible early in the process, and an experienced disability attorney will understand the evidence that Social Security needs to see in order to approve your case.
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