Does a Personal Injury Settlement Affect Unemployment Benefits?
A personal injury settlement generally does not impact your unemployment benefits—because compensation for medical expenses, pain and suffering, and non-economic damages is not considered wages or income for unemployment eligibility purposes. However, unemployment benefits could be affected if your settlement includes elements like lost wages, which some state agencies may treat as income. To safeguard your benefits, it’s important to work with an experienced attorney who understands pain and suffering policy limits and how settlement components may interact with state unemployment rules, ensuring you retain both your rightful compensation and access to unemployment support.
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