If my unemployment is about to expire and I decide to accept a cash settlement regarding an old worker’s comp case, will I need to pay back any unemployment benefits?

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If my unemployment is about to expire and I decide to accept a cash settlement regarding an old worker’s comp case, will I need to pay back any unemployment benefits?

Under my worker’s comp case, I was awarded lifetime medical. They have recently contacted me to offer a settlement and thus make me financially responsible for my future medical needs. If I decide to accept their cash settlement how will this affect unemployment?

Asked on July 2, 2015 under Employment Labor Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

The worker's compensation settlement will not affect unemployment compensation. Unemployment compensation is only affected by wages or salary paid to you, but not by settlements for injuries, including worker's compensation cases, or any other non-wage, non-salary payment or settlement by a former employer.


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