While it is not completely impossible to simultaneously seek disability insurance benefits while also alleging disability discrimination, doing so is fraught with peril for the reasons discussed below. Consequently, in most instances, a choice needs to be made as to whether to pursue disability benefits or seek redress for discrimination. In this article, we’ll explain how these claims intersect, the risks involved, and how to protect your disability insurance benefits if you decide to pursue both
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How Disability Insurance Benefits and Discrimination Claims Differ
A disability insurance benefits claim typically focuses on proving that you’re unable to perform the duties of your job due to a disabling condition. These claims, typically filed through employer-provided group plans or private insurance policy, do not consider whether accommodations could enable the individual to continue working. The focus is solely on whether the individual can fulfill a job requirements as stated in the policy. This difference in legal standards can create conflicting arguments when pursuing both claims.
On the other hand, the Americans with Disabilities Act (ADA), which protects individuals with disabilities from workplace discrimination, only offers protection to a “qualified individual with a disability.” A qualified individual is someone who, despite having a disability, is able to perform the essential functions of their job, either with or without a reasonable accommodation.
However, if someone cannot work because of a disabling impairment and no reasonable accommodations would allow them to continue working, the ADA does not protect them, and they may be lawfully discharged. This legal framework highlights that ADA protection is limited to employees who can still perform their job duties with accommodations, which can create conflicts with disability insurance claims.
Understanding the Conflict Between the Two Claims
Making a claim for disability insurance benefits may undermine a claim for disability discrimination, and vice versa. However, disability insurers do not usually consider the possibility of workplace accommodations, which makes it theoretically possible to pursue both claims at the same time, although this approach is fraught with risk.
Employees must also keep in mind that the ADA only requires employers to offer reasonable accommodations. What an employee considers “reasonable” may differ from what the law requires. Employers are not obligated to restructure jobs or change work processes to accommodate a single employee, and the cost of the proposed accommodation is often a factor in determining its reasonableness.
The Impact of Settlements on Disability Insurance Benefits
An employee who pursues both a disability claim and a discrimination claim at the same time also needs to be aware that if they collect disability benefits, those payments will likely reduce the potential damages in a discrimination claim. On the flip side, most group disability insurance policies contain provisions stating that disability benefits will be reduced by any payments made in settlement of a discrimination claim or by an award of damages following a trial.
Another consideration to keep in mind is that if a discrimination claim is settled, and the employee is required to execute a release as a condition of settlement, the release may also apply to the disability benefit claim, which could result in the disability insurer refusing to pay any benefits. [See: Avoiding Pitfalls in Severance Agreements to Protect Your Disability Claim].
It’s critical to review any settlement agreement carefully before signing, to make sure you don’t give up your rights to collect disability benefits.
EEOC Guidance on Concurrent Claims
The Equal Employment Opportunity Commission (EEOC) has published valuable guidance relating to concurrent claims for disability benefits and discrimination that offers further advice. See EEOC Enforcement Guidance.
Proceed With Caution: Protecting Your Disability Insurance Benefits
If you are contemplating trying to pursue both a disability insurance claim and a discrimination claim, please proceed cautiously. Consulting with both a a disability benefits lawyer and an employment lawyer is advisable before proceeding with either claim.
While DeBofsky Law does not handle employment discrimination claims and cannot advise clients in that area of the law, we are available to provide advice and consultation regarding disability benefits.
