Personal Injury Settlement Affects Unemployment Benefits
While most of us endeavor to work permanently, there are times when we can lose our job through no fault of our own. Losing a job suddenly and worrying about paying bills and food on the table can make you feel hopeless. Luckily, the government often provides a stimulus to people in this situation.
Unemployment benefits are a form of financial aid provided to workers who have lost their jobs. Unemployment benefits can help pay for basic expenses such as food, shelter, and medical care. These benefits are funded by taxes paid by employees and employers. But what if you have a personal injury settlement? Keep reading to find out if your settlement affects unemployment benefits and how a lawyer from our firm can help protect you financially.
Who Is Eligible to Receive Unemployment Benefits?
Unemployment benefits are financial benefits paid to unemployed workers by the government. They may be paid out of the U.S. government’s unemployment fund or directly from your state or local government. Once you are paid unemployment benefits, you must report them to the Internal Revenue Service.
To qualify for unemployment benefits, you must meet certain requirements, such as being unemployed through no fault of your own, actively looking for work, and meeting the weekly earnings requirement during most weeks of the benefit year.
The amount you receive depends on how long you have been out of work, your age, and your marital status. Your eligibility might be limited if you were laid off due to economic conditions (such as a factory closing).
Determining Your Eligibility
You are eligible for unemployment benefits if:
- You were employed for at least six months in the past three years and still do not have a job
- You have been actively looking for a job despite being unemployed
- You are experiencing severe financial hardship because of unemployment.
- You earned money before becoming unemployed.
What Is a Personal Injury Settlement?
A personal injury settlement is an out-of-court compensation a defendant pays to a plaintiff in a civil action. These settlements typically arise from injuries sustained due to another party’s negligent conduct or breach of duty. If you are unsure if you want to pursue an out-of-court settlement, a personal injury lawyer can help guide you in making the best decision for your situation.
Personal injury cases are often resolved before they go to court with a financial settlement that reimburses the victim for their losses. For example, if you were injured in a car accident caused by a reckless driver, you may be able to receive compensation for your medical costs and other damages through a settlement.
Can a Personal Injury Settlement Affect Unemployment Benefits?
No, personal injury settlements are not a factor in determining eligibility for unemployment benefits. If you receive a settlement, it will not affect your right to collect unemployment benefits. The amount of money you receive in a settlement is also not a factor in determining eligibility for unemployment insurance.
You can still collect unemployment benefits because personal injury settlements are not classified as wages or income. However, to qualify, you still must meet the eligibility criteria, including past work history and actively looking for a job.
Personal injury settlements and unemployment benefits are two separate entities, and two separate formulas are used to calculate the amounts each person receives. One formula is based on who negligently caused their injuries, while the other is based solely on employment history.
Get an Attorney to Protect Both Your Unemployment Benefits and Your Personal Injury Settlement
If someone’s negligence injured you, protecting your unemployment benefits and your personal injury settlement is important. While this may sound obvious, many people are unaware of how to do it.
The first step in protecting your rights is getting a Fort Myers personal injury attorney who knows how to handle both sides of the issue. A personal injury attorney from our firm can not only help protect your interests but also ensure that no problems arise along the way.
You Need a Personal Injury Lawyer in Your Corner
If you were injured in an accident and received a personal injury settlement, you need to know if and how your settlement could affect your unemployment benefits. After all, you are counting on this money to keep you and your family afloat as you heal and secure new employment.
Call us for a Free Case Review with the Law Offices of Wolf & Pravato.
Many people in this situation find it beneficial to consult an attorney who can ensure that both your unemployment benefits and personal injury settlement are appropriately handled. With a Fort Lauderdale personal injury attorney on your side, we can also help avoid delayed or decreased payments due to any legal technicalities or miscommunications between the insurance companies and other parties involved. At the Law Offices of Wolf & Pravato, we have personal injury lawyers who are ready to work for you. Call us today at (954) 633-8270 for a free consultation.
