What to Expect When an Employee Goes on Long-Term Disability

When a serious medical condition prevents an employee from continuing to work, long-term disability coverage becomes an essential source for wage replacement. It’s important to understand your employee rights during long-term disability and how to protect and exercise them.

The disability professionals at American Disability Action Group have put together this blog to explain what happens when an employee goes on long-term disability. It includes a look at the laws that protect you, the rights you have, and how to exercise them.

What Is A Long-Term Disability?

It’s common to miss a few days of work due to a minor injury or an illness, such as the flu. A severe medical condition that prevents someone from working for weeks or months generally falls into the category of either a short-term or long-term disability.

Short-term disabilities typically prevent an individual from working for weeks or months because of a medical condition. Long-term disability generally means that a person’s inability to work lasts more than a year.

Long-term disability insurance policies define the minimum and maximum duration of time that an employee must be unable to work for it to be considered a long-term disability under the policy. It also explains the disability benefits paid while an employee cannot work and other terms of the coverage.

An employee on long-term disability receives wage replacement benefits. These benefits typically replace 50% to 70% of an employee’s pre-disability earnings. Other provisions of employer-sponsored plans generally include:

• The waiting period from the start of a medical condition until benefits begin.
• The duration of time the plan pays benefits for long-term disability.
• Explanation of covered conditions for which the plan pays benefits.

A section of the policy will define disability for purposes of determining whether benefits will be paid. Some policies define disability as the inability to do the activities required for your current job. However, the definition could require that you be unable to do any type of work in order to receive benefits.

What Happens When An Employee Goes On Long-Term Disability?

Contrary to what you might think, your job and other workplace benefits during long-term disability may not be protected. Some employers continue your employee status, including keeping you on the payroll and covered through a group health insurance plan, while others do not.

When making a decision about your employer’s long-term disability process for employees, one consideration on your mind should be health insurance coverage. Will your coverage under the group health insurance plan where you work end when you go out on long-term disability?

The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that provides individuals the right to continue their group health insurance coverage for a limited period of time. However, the premium for COBRA coverage can be expensive.

Consult a disability attorney at American Disability Action Group to learn about your rights under the COBRA law. Conditions to COBRA coverage may apply, but an attorney will review your situation and explain whether your health insurance coverage is protected by the law.

Limited Job Protection While On Long-Term Disability

As previously mentioned, there are limitations on employer responsibilities for long-term disability job protection. The federal Family and Medical Leave Act (FMLA) offers limited job protection for 12 weeks when you must take time away from work.

Some states have laws similar to the FMLA that may provide job protection. If your employer does not have a policy that protects you from losing your job while on long-term disability, a consultation with a disability attorney at ADA Group can offer insight into your rights.

Social Security Disability Insurance and Long-Term Disability

The terms and conditions of long-term disability policies may require that you apply for benefits through the Social Security Disability Insurance program administered by the Social Security Administration. Depending on the terms of your long-term disability coverage through work, approval for SSDI typically results in a reduction of the wage replacement payments you receive through your employer’s plan.

How Can A Long-Term Disability Attorney Help?

The assistance of an attorney experienced in long-term disability matters can help explain and defend your rights. For example, a denial of a long-term disability claim or an initial SSDI claim can be appealed. A disability attorney knows the rules and procedures of the appeal process to give you the best chance of a successful outcome.

The attorneys at American Disability Action Group provide superior services to people with disability claims nationwide, with offices located in Arkansas, Louisiana, Mississippi, Oklahoma, Tennessee, and Texas. When you need assistance with long-term disability or Social Security Disability claims, turn to the disability professionals you can trust and rely upon at the American Disability Action Group. Find out how we can make a difference in your life by contacting us for a free consultation.