Workers' Comp & Disability
Workers' compensation, short-term disability, and long-term disability — what they cover and how they differ.
Key Things to Know
Workers' compensation covers injuries or illnesses that occur on the job — it is employer-funded and no-fault
DOL Workers' Comp OverviewShort-term disability (STD) covers non-work-related illnesses or injuries, typically replacing 60–80% of salary for up to 6 months
DOL Disability BenefitsLong-term disability (LTD) kicks in after STD ends and can last years or until retirement age, covering serious or permanent conditions
DOL Long-Term DisabilityKey difference: Workers' comp = work-related injury/illness. STD/LTD = off-the-job conditions. They cannot be used simultaneously for the same condition
Comp vs. Disability ExplainedSSDI (Social Security Disability Insurance) is a federal program for long-term disabilities lasting 12+ months — separate from employer plans
SSA Disability BenefitsSeveral states (CA, NJ, NY, RI, HI, WA) mandate short-term disability insurance through state programs
State Disability ProgramsSide-by-Side Comparison
| Feature | Workers' Comp | Short-Term Disability | Long-Term Disability |
|---|---|---|---|
| Cause of condition | Work-related injury or illness | Non-work illness/injury | Non-work illness/injury (severe/prolonged) |
| Who pays | Employer (required by state law) | Employer and/or employee (insurance) | Employer and/or employee (insurance) |
| Wage replacement | Typically 66% of wages | 60–80% of salary | 50–70% of salary |
| Duration | Until recovered or permanent disability determined | Up to 3–6 months | Years or until retirement age |
| Medical coverage | Yes — covers all work-injury medical costs | No — separate health insurance applies | No — separate health insurance applies |
| Job protection | Varies by state; retaliation is illegal | No (but FMLA may apply) | No (but ADA accommodations may apply) |
Relevant Federal Laws
Longshore and Harbor Workers Compensation Act
Federal Employees Compensation Act (FECA)
Social Security Act (SSDI/SSI)