Potter v. Department of Labor & Industries

**Potter v. Department of Labor & Industries: Court Allows Benefits Offset** This case involved a worker who received both Washington state disability benefits and Social Security disability benefits for the same time period. The worker argued that the Department of Labor and Industries couldn't reduce his state benefits just because he also received Social Security disability payments in a lump sum. The Washington Court of Appeals disagreed with the worker and sided with the state agency. The court ruled that the Department of Labor and Industries can reduce retroactive disability payments by subtracting any Social Security disability benefits the worker received during the same period. This applies even when Social Security pays benefits as one large lump sum rather than in monthly payments. **What this means for workers:** If you're receiving both state disability benefits and Social Security disability benefits for the same injury or condition, don't expect to keep the full amount from both programs. State agencies can reduce your state benefits dollar-for-dollar based on what you receive from Social Security, regardless of whether Social Security pays you monthly or in one large payment. This prevents workers from receiving duplicate payments for the same disability period, but it also means your total benefits may be less than you initially expected.