Quick answer: Workers’ compensation pays you when a job injury or illness keeps you from working. Unemployment (EDD) pays you when you lose your job through no fault of your own and are able and available to work. In California you generally cannot collect both for the same weeks, because one says you can’t work and the other says you can.
What is the difference between workers’ comp and unemployment?
| Workers’ compensation | Unemployment (UI) | |
|---|---|---|
| Who qualifies | Employees hurt or made sick by their job | Workers who lost a job through no fault of their own |
| Must you be able to work? | No — benefits are for when you can’t work | Yes — you must be able and available |
| Who pays | Employer’s insurance company | State EDD |
| Weekly amount | About 2/3 of your average weekly wage (state max applies) | Up to $450/week |
| Medical care | Yes, paid by insurer | No |
| Where to file | Your employer (DWC-1 form) | EDD online |
Can I collect workers’ comp and unemployment at the same time?
Generally, no — not for the same period. Temporary disability (workers’ comp) is for weeks you can’t work; unemployment requires you to be able to work. Collecting both for the same weeks can lead to overpayments you must repay.
When can I switch from workers’ comp to unemployment?
You may qualify for unemployment if:
- Your doctor released you to modified or light duty, and
- Your employer cannot or will not offer that work, and
- You are actively looking for work within your restrictions.
Your workers’ comp case can usually continue for medical treatment and permanent disability even while you receive unemployment. Talk to a lawyer before filing so the two claims don’t conflict.
What if I was fired after getting hurt at work?
You may be able to file for unemployment and keep your workers’ comp case. Firing someone because they filed a workers’ comp claim is illegal in California under Labor Code §132a, and you may be entitled to extra compensation.
What about State Disability Insurance (SDI)?
SDI covers injuries or illnesses that are not work-related. If your workers’ comp claim is delayed or denied, you may be able to receive SDI temporarily; it is often reimbursed if comp is later approved.
Which one should I apply for?
- Hurt at work and can’t work? Workers’ comp.
- Laid off and healthy? Unemployment.
- Hurt at work, released to light duty, but no job available? Possibly unemployment while your comp case continues.
- Hurt off the job? SDI.
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Frequently asked questions
Will unemployment affect my workers’ comp settlement?
It can affect temporary disability for the same weeks, but it usually does not cancel your right to medical care or permanent disability benefits.
Do I have to tell EDD about my workers’ comp claim?
Yes. Always report other benefits to EDD honestly to avoid overpayments and penalties.
Is workers’ comp taxable?
Workers’ comp benefits are generally not taxable. Unemployment benefits are taxable for federal purposes.
How fast should I act?
Report a work injury to your employer within 30 days and file for unemployment as soon as you are out of work — both have deadlines.
This article is general information, not legal advice. Every case is different — contact an attorney about your specific situation.