Federal judge orders Wisconsin to pay disabled workers

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A federal judge has ordered Wisconsin’s Department of Workforce Development to compensate disabled workers who were denied unemployment benefits under a state law struck down as discriminatory.

U.S. District Judge William Conley‘s order promises relief to potentially thousands of workers affected by a 2013 Wisconsin law that banned recipients of federal disability aid from collecting unemployment compensation when they lost work.

But many details remain to be ironed out, including how quickly the state will reprocess a decade’s worth of denied claims and whether any claims should draw priority.

“Some work needs to be done yet to put the order into practice, and counsels for the class are working diligently to get to that point,” said Paul Kinne, one of the attorneys representing plaintiffs.

Conley issued his order Wednesday following a hearing in which attorneys representing workers and the state discussed remedies for denials under a law that Conley ruled violated the Americans with Disabilities Act and the Rehabilitation Act.

The overturned law prevented recipients of Social Security Disability Insurance (SSDI) — a monthly benefit for people with disabilities who have worked and paid into Social Security — from collecting unemployment insurance.

Republican lawmakers who approved the law claimed in 2013 that simultaneously collecting disability and unemployment benefits represented “double dipping.” But SSDI guidelines have long allowed and even encouraged recipients to supplement their income with part-time work, so long as their earnings remain below the threshold of “substantial gainful activity.”

Conley’s order covers two classes: workers who were denied unemployment benefits after Sept. 7, 2015, and before July 30, 2025, due to receiving SSDI, and those who had to repay benefits they received during that period for the same reason.

Not every class member is automatically entitled to benefits, Kinne said, and it may take time to determine eligibility. That’s due to a variety of factors, including potential difficulties in retrieving and analyzing past claims data — and locating the claimants. Still, Kinne expects an “overwhelming majority” of class members to be compensated.

In addition to receiving compensation for past denied claims, class members can file certifications for subsequent weeks in which they were told they were ineligible to file. These certifications should be submitted within 90 days of receiving notice from the department, the order said.

The order also states that claimants who were charged with unemployment fraud for not properly disclosing their SSDI status will be eligible for benefits they had to repay.

Class members who received federal Pandemic Unemployment Assistance (PUA) — aid for people who lost work during the COVID-19 pandemic but didn’t qualify for regular benefits — will not receive additional benefits for weeks in which they already received pandemic aid. PUA claims were paid at a higher rate than regular benefits, Conley’s order states, and federal law bans the collection of both.

The Department of Workforce Development will begin notifying affected workers by Oct. 1, the order said. The parties must still agree on the language for those notifications, which should inform affected workers about the outcome of the lawsuit and how to claim benefits to which they should be entitled.

“I was generally pleased with the order,” Kinne said. “There is now light at the end of the tunnel for disabled people to receive the unemployment compensation that they should have received in the past.”