Wisconsin ends unemployment aid ban for workers with disabilities. Now they want compensation for past denials.

Wisconsin has stopped blocking laid-off workers who receive disability benefits from collecting unemployment insurance — a response to court rulings that the practice violated federal discrimination law. 

Now U.S. District Judge William Conley will consider whether and how the state should compensate workers for past denied claims. Attorneys representing the state and affected workers plan to propose remedies ahead of a hearing on Wednesday. 

“In my eyes, we deserve all of it,” James Trandel, a longtime seasonal worker who faced denials for years, told Wisconsin Watch. “The law should have never been.”

The state law in question 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 after losing work. 

In proposing the law under Gov. Scott Walker in 2013, Republican lawmakers claimed that simultaneously collecting disability and unemployment benefits represented “double dipping” that “may constitute fraud.”

That overlooked the fact that SSDI guidelines have long allowed and even encouraged people on disability to supplement their income with part-time work, so long as their earnings remain below the threshold of “substantial gainful activity.” 

Eight SSDI recipients, with help from attorneys, challenged the law in 2021 by filing a class action lawsuit.

Conley ruled in July 2024 that the law violated the Americans with Disabilities Act and the Rehabilitation Act, citing its “disparate impact on disabled workers seeking unemployment insurance benefits.”

But the ruling was not immediately implemented. The state’s Department of Workforce Development continued denying unemployment claims until Conley ordered it to stop in July.

DWD spokesperson Haley McCoy said the department did not oppose Conley’s order to stop enforcing the law he struck down, but she declined further comment due to pending litigation.

The lawsuit covers two classes: workers who were denied unemployment benefits after Sept. 7, 2015, due to receiving SSDI, and those who had to repay benefits they received for the same reason.

Conley will now consider who in those classes qualifies for benefits and how much they should get. 

Both parties will exchange proposals before Wednesday’s oral arguments to address such questions, said Victor Forberger, an attorney for the plaintiffs who has helped many SSDI recipients pursue their claims. The plaintiffs want the state to fairly compensate those who faced discriminatory denials, he added. 

The discussions may also involve how to address past claims for federal Pandemic Unemployment Assistance (PUA) — aid for people who lost their jobs during the COVID-19 pandemic but didn’t qualify for regular benefits. The state initially denied PUA claims from workers on disability, but it reversed course in mid-2020 following Wisconsin Watch and WPR’s reporting on the denials.

“No one’s asking to get paid benefits twice. They’re just asking to get paid to be treated just like everyone else,” Forberger said.

Fighting for future generations 

Trandel, who has used a wheelchair since a 1983 fall left his legs paralyzed, filed for unemployment for years during the off-seasons of his job as a gate chief for the Milwaukee Brewers, where he helps with tickets and security. He has since hit retirement age, now 67, allowing him to switch from SSDI to Social Security retirement benefits. The state allowed him to collect a couple of weeks of state unemployment pay for the first time this spring because he was no longer on SSDI.

Although Trandel managed to get by without the state fulfilling his past claims, he believes that compensating workers for past denials would offer a measure of justice.

But even if that doesn’t happen, he’s proud of what the lawsuit has accomplished so far. 

“If I get nothing, that’s fine,” Trandel said. “At least the law’s changed so the future generations won’t have to go through what we went through the last 12 years.”

Judy Fintz, a seasonal worker and a plaintiff in the lawsuit, hopes that allowing SSDI recipients to collect unemployment like others will eliminate one of the many barriers they face in interacting with a long-outdated system that’s undergoing an overhaul. 

Fintz spends the school year cleaning tables, windows and soda machines part time at the University of Wisconsin-La Crosse dining hall. She applied for unemployment during the off months from school, when she relies on SSDI while her bills pile up. That experience was far from smooth, even outside of the denials. She faced the difficulties of having to file claims by phone rather than online due to a severe learning disability, and she said she was treated poorly.

“This should really change everything around,” Fintz said of the court proceedings. “We should be able to get (unemployment insurance) without issue, so we can pay our bills.”

Reentering the workforce

As they await the outcome of litigation, some SSDI recipients are looking for more work that accommodates their disabilities.

Eugene Wilson of Madison is one such person. He deals with anxiety, depression and post-traumatic stress disorder — conditions that make him easily overwhelmed by tasks and make repetitive work difficult.

Wilson found part-time work years ago before being laid off during the pandemic. He was denied regular unemployment and PUA during a process that took an additional toll on his mental health, he said.

He now receives about $1,500 a month in SSDI benefits and affords his apartment with the help of rental aid. He barely gets by.

He has tried for years to return to the workforce, but he rarely hears back after filing applications and sending thank-you messages. 

“It’s like nobody wants to hire anybody on disability,” Wilson said.

“I just want to get out there and do it and show people that people on disability can do this.”

Jessica Barrera of Eau Claire has a similar goal. Wisconsin Watch followed her in 2020 as she navigated life as a single mother who lost her job during the pandemic and depended in part on SSDI to survive. She spent six months fighting to receive her PUA claim after being denied regular unemployment insurance, initially unaware of the 2013 state law. 

“It really made me feel less than others,” Barrera said. 

That pushed her toward a new goal: “to be equal” by earning a degree and returning to the workforce full time. Barrera is just two semesters away from earning her bachelor’s degree in social work at the University of Wisconsin-Eau Claire. She works part time as a peer and parent support specialist, supporting families with mental health challenges  — including those who face similar barriers to hers.

She lives with a rare disorder that makes her blood too thick, causing clots and severe fatigue that can make it hard to even get out of bed. Her current job gives her the flexibility to handle her frequent medical appointments and other challenges with the disease. Working full time will require finding an employer who understands her situation.

Barrera, who is not a plaintiff, encourages those seeking justice in court to stay hopeful and persistent.

“When I got the denial, had I just been like, ‘Well, I’m denied. I’m just out of luck’… Would we be where we are now?” Barrera said. “You have to sometimes be patient, but keep (up) the good fight.”

This article first appeared on Wisconsin Watch and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.