I was forced to go on disability leave due to a medical condition. However, I wanted to do some work while on disability but did not know if I would be allowed to work from home at the time.
So, am I allowed to work from home while on disability leave? That depends on the type of leave you are on and the source of benefits. Different types of disability leave, such as whether it is provided by a private employer or the government have various limitations on the work that is permitted. The kind of work you perform while on leave, how much time spent working, and how much you are allowed to earn differs depending on the source of coverage.
Whether you freelance or are employed full time by a particular company will also affect what type of work is permitted while you are on disability.
Private disability coverage can vary greatly depending on the individual company, and this includes the restrictions on work which is permitted. If you are also on Social Security Disability, many companies that offer disability leave will subtract the amount of money provided by the government from the total amount of benefits they pay,
Social Security Disability has its own rules which would force you to obey two sets of regulations.
Different Types of Disability Leave
The laws regarding what type of work you are allowed to perform while on disability leave vary depending on the type of medical leave. Short-term and long-term disability regulations differ. For example, in the United States, according to the Family and Medical Leave
The FMLAdoes not prohibit an employee from working another job while on FMLA leave. However, according to FMLAregulation 825.216(e) “If the employer has a uniformly-applied policy governing outside or supplemental employment, such a policy may continue to apply to an employee while onFMLA leave.” Although paid disability payments may potentially begin at any time under appropriate circumstances, it frequently does not commence until after 12 weeks of unpaid medical leave is over. Many companies will provide paid disability benefits at that point to qualified individuals. The private disability payments, are either funded by the company or more commonly paid by an insurance company which provides this coverage, will pay a set portion of your salary. To qualify for disability payments, you will have to follow a set of regulations and will have to remain disabled. The conditions which determine whether you are eligible to receive disability payments will detail exactly what type of work is permitted and how much you are able to earn.
If you are on paid medical leave, the limits on the amount of work you are permitted to do and the income made vary by the private disability policy which an employer may have. Some people who freelance or own their own businesses purchase private disability insurance to protect themselves. Essentially, those self-employed individuals who buy disability insurance are providing themselves with the “fringe benefits” an employer may have supplied.
Also, if you are on Social Security Disability, there is an entire set of regulations which must be followed, some of which differ from private policies. These rules specify the type of work permitted, how much time is spent working, and the permitted amount of income.
What Type of Work Is Permitted While on Disability Leave
If you are on paid medical leave, there may be limits on the type of work you are permitted to do while on disability. These can vary by policy. For example, many disability policies have an “own occupation” definition of disability. This will allow you to work in an occupation in which your duties are substantially different from your old job. People who work at home are likely to work in another type of occupation to help abide by this particular restriction. However, just because you are working for yourself, your job will not be considered a different occupation. It must be in a different industry. Social Security Disability does not have an “own occupation” definition of disability. It just restricts the amount of time you spend working and the amount you make.
How Much Work Are You Permitted to Perform
If you work part-time while on disability leave, there is a limit to how much time you may spend working and still qualify for disability benefits. Both Social Security Disability and private disability insurance plans will measure the amount of time you spend working. These limits can vary depending on the disability insurance plan provided by your employer or one you purchased for yourself.
The Social Security Administration encourages recipients to find ways to return to the workforce and will assist you in an attempt to do so. Part of their effort to help people return to the workforce is not immediately discontinuing your benefits if you follow a program that will help you do so.
How Much You Are Allowed to Earn While on Disability
If you are on Social Security Disability Insurance (SSDI), you are only permitted to make a certain amount of money per month. The total is amount adjusted annually. For 2019, the income limit is $1,220 per month. If you exceed this amount, you could lose your Social Security Disability benefits.
Private disability insurance policies, whether from your previous employer or one you purchased yourself, also have a maximum monthly benefit they will pay. If you work while on disability, they will usually reduce the size of these benefits by the amount you earn so your total income will be unchanged. Any changes in the amount of SSDI you receive will also reduce benefits paid by a private disability benefit plan.Essentially, what you received when first going on disability is the most you can hope to receive if you worked for someone else. Social Security Disability has no formula for reducing benefits. Either you qualify for the same amount, plus whatever adjustments are made for inflation, or they give you nothing.
If you own your own business, the Social Security uses several tests to determine if you are making more than the monthly allowable limit. Unless you work as a partnership, there are no adjustments permitted for work performed by or income earned by a co-worker. Therefore, all of the earned income from your company is counted towards the allowable monthly limit.
Although the regulations of both private disability benefits and Social Security differ if you lose one of them you will probably lose both.
Related Questions
I Want To See If I Can Go Back To Work. How Can I Find Out?
SSDI recipients are entitled to test their ability to work and continue to receive full benefits regardless of the amount they earn for a nine-month trial work period. After that trial period, for 36 months, you can still receive SSDI for any month your earnings fall below the limit. This is called the extended period of eligibility. After 36 months, if you make more than the maximum amount you may lose your disability benefits.
My Disability Insurance Is Reduced If I Work Part Time. Should I Work Anyway?
Many private disability insurance policies have lifetime benefit limits. Although your monthly benefit may be reduced if you work part-time, this could ultimately be to your advantage. By working while disabled and collecting less per month, you can extend the amount of time you qualify for disability.