Serious injuries often qualify for two checks: California comp and federal SSDI. They stack — up to a point. That point is the workers’ comp offset, and understanding it before settlement is worth real money. (First, disambiguation: SSDI is federal Social Security disability. California’s SDI is the state wage-replacement program. Different agencies, different rules, endless confusion.)
Two systems, two different questions
Comp asks: what did the work injury take from your earning capacity? — answered in percentages by the rating schedule. SSDI asks: can you do substantial work at all? — a yes/no about your whole medical picture. A 40% PD case can be an SSDI case when the whole person can no longer work; the systems evaluate independently and paying into both means qualifying for both.
The offset: a ceiling, not a bar
Federal law caps the combined monthly total of comp indemnity and SSDI at a share of your pre-injury average earnings — commonly described as the 80% cap. Comp pays in full; SSDI absorbs the reduction when the combination exceeds the ceiling. Which is why TD at two-thirds of a decent wage often zeroes out SSDI temporarily, and why the interplay changes again at P&S when TD converts to the PD rate.
The settlement drafting that protects the check
A C&R without offset language invites SSA to treat the lump sum as concentrated monthly income. The fix is standard: proration (amortization) language spreading the settlement over life expectancy, so the offset computation sees a modest monthly equivalent. It costs nothing to include and preserves the SSDI stream for years. SSDI approval also starts the Medicare clock (24 months out) — which is exactly when Medicare set-aside analysis enters any settlement closing future medical.
Estimates for informational use; not legal advice — offset math is federal, fact-specific, and worth a professional’s eyes before any settlement signs.
Rate your spine right here
Same engine as the tables above — pick your occupation and age, slide the WPI from the report, and carry it into the full calculator when you’re ready.