Voc Rehab, Cash and Work - a Conundrum

Sunday, July 20, 2003 | 0

What happens if you are entitled to vocational rehabilitation, but you find some part time work in the meantime to tie things over until the plan gets going because you need some cash?

Ludicrous as it may seem, you might be breaking the law trying to feed your family! In addition, the insurance company may be able to reduce the amount of money it ends up paying you for your permanent disability because they may be entitled to take credit for any indemnity paid for vocational rehabilitation while you are working.

Most vocational rehabilitation systems provide a stipend to assist the injured worker in getting going again in the open labor market. The problem is that the weekly payments that are intended to keep some cash flow going are even less than the weekly temporary disability payments, sometimes up to half as much. In California you may take advances against your permanent disability up to the maximum level of weekly payments you are entitled to (as determined by your date of injury) but the problem with that is it depletes your ultimate payout and it generally is still not enough to get by on. So what do you do?

First, do not do anything without consulting your attorney (assuming you are represented). Your attorney must know of your plans, and your predicament. There may be alternatives available for you, or in the least, your attorney can assist you in mapping out a strategy to maximize your vocational rehabilitation entitlement to lessen the financial impact on your cash flow.

If you are not represented, discuss the matter with your claims adjuster. It may be that you will be able to have your work incorporated into a vocational rehabilitation plan, and in the least you will avoid any accusations of fraud.

Failure to disclose your part time work may demonstrate that you do not need vocational rehabilitation assistance, thus jeopardizing your entitlement to vocational rehabilitation completely; or 2) you may unwittingly be breaking the law!

If you find that you cannot exist without working while on vocational rehabilitation, then you have to honestly assess whether in fact vocational rehabilitation is even going to benefit you. If your injury is after 1/1/03 in California and you are represented by an attorney, you are entitled to settle out your vocational rehabilitation rights. Perhaps the cash up front is actually a better solution for you because it provides some financial breathing room rather than obtaining vocational rehabilitation.

The bottom line is that while the cash available to the injured worker involved in vocational rehabilitation for general living expenses isn't very much, it is worse for you to work without telling anyone while receiving benefits. Keep your attorney and the insurance company informed and you're vocational rehabilitation experience will be more pleasant.