Eligible for Unemployment if on WC??

Our company just released an employee who has been on Worker's Comp. for some length of time now, and he is receiving worker's comp. benefits. He was released from his position because he is unable to return to work & perform the duties he was originally hired for, or any position, for that matter, without creating an entire job/position from the clear blue sky. My question is simple: Is this employee still eligible to receive unemployment, seeing that he is receiving worker's compensation benefits?

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  • I copied the following information from the Texas Workforce Commission website:

    Ongoing availability and work search requirements:

    During each week you claim, you must:
    Make an active search for full-time work
    Be physically able to work
    Be available for full-time work
    Apply for and accept suitable work

    Not sure about all states, but in Texas you must be physically able to work and actively seeking employment to be eligible for benefits. It only makes sense that if you do qualify for worker's comp insurance you'd be unable to qualify for unemployment insurance.


  • Your released employee is ineligible for unemployment benefits for any week for which the employee receives workers' compensation benefits. Once the workers' comp benefits expire, the employee would presumably be eligible for unemployment.



    Brad Forrister
    Director of Publishing
    M. Lee Smith Publishers


  • In your example, the expiration of a comp check isn't the driving factor in the receipt of unemployment benefits x:-). The physical ability of the individual to work is the determinant. Mississippi law is almost identical to what JAM from Texas posted. The conditions for eligibility in MS mirror those of TX. Conceivably an individual could not be still drawing a comp check and be determined ineligible for UI benefits if that portion of the test is not met. Plus, the individual will have to have wages in the first 4 of the last 5 completed calendar quarters (in most states) and someone who's been out on comp may not meet that part of the test either.
  • OK...if the employee settles his WC claim, then decides to file for unemployment, how do you think the Dept. of Labor would handle his case, considering the fact that of the first 4 of the last 5 quarters while employed with our company, he was out with WC 41% of the time (of 261 days, he was out 108 day total)? Can he collect unemployment benefits for the time that he wasn't technically at work, but out on medical leave for WC? Thanks for any input!
  • Can he collect unemployment benefits for the time that he wasn't technically at work, but out on medical leave for WC? Thanks for any input!

    No. Benefits are NOT retroactive unless an investigation is underway or an appeal is filed and the claimant is later ruled eligible. In that event, they retro the checks for the entire period for which he is ruled monetarily and otherwise eligible (I detest sounding like a government worker). But, the period during which he was ruled ineligible due to medical restriction won't later be ruled eligible (unless it was an incorrect ruling to begin with) and that's what a retro check would in effect be doing. If he draws at all it will be for the period beginning with the weekly claim for which he showed them the medical restriction is lifted. A quick call to the UI office will answer this generically for you without even having to mention the claimant/employee. If he draws at all, it will be based on only the period during which he has been "Able and Available" for work and will hinge on the quarterly wages earned, not merely the fact that he is unemployed. But, the miniscule amount by which company's rate will be affected will not make a dent in what the comp payout was!
  • Another thought - once the employee is declared permanent and stationary, although he may not be able to return to work for you, that doesn't mean that he can't perform some other types of duties for someone else. He could get a permanent/partial disability rating and lump sum award for his injury with you, and then still be eligible for unemployment.
  • Good information that I can continue this case with! I appreciate your thoughts and responses! :)

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