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Short Term Disability

Short Term Disability benefits are granted when a person is incapacitated by any illness or injury and is temporarily unable to resume employment. Unlike Social Security Disability, these benefits are granted for a short period of time — typically between 12 to 26 weeks. Appointed doctors and specialists review such cases to determine whether an applicant is qualified for disability or not. Once granted, the applicant is entitled to a percentage of the salary which is paid by the insurance company or the state. Below, Legal Experts answer questions on laws related to the program.

If I find another job while receiving Short Term Disability benefits, can I discontinue the benefits, resign from my present job and take up the new job?

While there are no rules against interviewing for another job during Short Term Disability leave, you are obliged to notify the SSA that you are cancelling your Short Term Disability benefits and returning to work when you find another job. The key point is that you cannot start work while you are still on Short Term Disability benefits.

Is it legal to collect Short Term Disability from one’s full-time job and work six hours a week at a part-time job?

There will be legal consequences for working when receiving Short Term Disability benefits. If you are on leave for disability with one employer, you are considered incapable of working. The logic here is that if you are able to work, then you should not be on Short Term Disability benefits. Doing so will not only jeopardize your benefits but may cause the employer to bring charges of fraud against you. Ignorance of the law cannot be claimed as defense.

If someone is on Short Term Disability, but is yet to be paid by the private insurance provided by the employer , what legal recourse can be taken?

If a person is e certain that he/she is entitled to the Short Term Disability benefits from the insurer engaged by his/her employer, he/she may send a formal letter from the local attorney stating that a claim for punitive damages against the insurer for refusal pay what is due will be filed. Since such damages will be substantial, the insurer should be motivated to pay the Short term Disability claim as per the policy.

Can I claim Short Term Disability benefits from the state of Arizona if my employer does not offer those benefits?

Depending on your circumstances, you may be able to claim Social Security Benefits which are provided to disabled individuals. Such benefits can be both long-term as well as short-term. To claim the benefits, you will have to contact your local Social Security office.

However, your employer is obliged to pay worker’s compensation in case of a workplace injury.

Many may not be aware that Short Term Disability income is taxable if the employer shares the cost of the insurance premium. This is fairly common as many employers choose to provide disability insurance as a paid benefit to the employees. In such cases, disability premiums are taxed based on the percentage paid by the employer. However, they are not taxed if the premium is paid entirely by the employee using after-tax dollars. To get more information on laws related to Short Term Disability and your rights under the law, you may need to contact an Expert.
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