STEP ONE DENIALS
What is a Step 1 disability denial?
A Step 1 denial occurs when the claimant is not eligible to receive any Social Security disability benefit, even if he is severely impaired.
This occurs when the claimant is working at 'substantial gainful activity' (SGA) and earning wages of at least $1,170 per month, which is the 2017 definition of SGA. (The amount is $1,950 per month for an individual who is
statutorily blind).
Step 1 of the decision making process asks the question, "Is the claimant now working?" If so, the process stops at Step 1 and a denial of benefits is made. The process goes no further.
It is the position of Social Security, and written in the federal regulations, that a person who is working at the SGA level cannot be disabled. The work or productivity is the problem. Social Security views work as prima facie proof that a person is able to work, therefore, not disabled.
Here are some questions we get about Step 1 denials:
https://www.ssa.gov/OP_Home/cfr20/416/416-0974.htm
*There are exceptions to the SGA rules, so individuals considering an SSDI claim should consult with an attorney or Social Security professional. Some exceptions to the SGA rules could be, for example: A person is working in a sheltered environment where he/she does not have to perform the same work required of other employees because of accomodations. Or, an individual is doing subsidized work-- work that is being fully or partly paid for by someone other than the employer, such as a vocational rehabilitation agency, or other entity, and this work would not commonly be available in the competitive job market. Another example would be where an individual works for a family member (such as a parent) who makes the job available only as a favor to the family member without expecting normal productivity.
The information provided here is for information purposes only. No one should depend on this information in a particular claim, or situation, but should seek professional counseling about the best course of action. Social Security regulations are complex and change from time to time. Therefore, no website should be relied on in the absence of professional advice.
A Step 1 denial occurs when the claimant is not eligible to receive any Social Security disability benefit, even if he is severely impaired.
This occurs when the claimant is working at 'substantial gainful activity' (SGA) and earning wages of at least $1,170 per month, which is the 2017 definition of SGA. (The amount is $1,950 per month for an individual who is
statutorily blind).
Step 1 of the decision making process asks the question, "Is the claimant now working?" If so, the process stops at Step 1 and a denial of benefits is made. The process goes no further.
It is the position of Social Security, and written in the federal regulations, that a person who is working at the SGA level cannot be disabled. The work or productivity is the problem. Social Security views work as prima facie proof that a person is able to work, therefore, not disabled.
Here are some questions we get about Step 1 denials:
- QUESTION: Sure, I'm working full-time now, but I'm in constant pain and my doctor says I'll be lucky to keep working 6 more months. Why can't I apply for SSDI now so it will be ready when I have to quit 6 months from now? ANSWER: The regulations simply don't permit it. You have to stop working now or cut back to below SGA level before you apply.
- QUESTION: I'm receiving about $2,600 per month from my former employer's retirement (or disability) plan. However, I'm not working. Will this disqualify me for SSDI at Step 1? ANSWER: No, since it is non-earned income and is not produced by working, it is not disqualifying at all.
- QUESTION: "OK, I am working 20 hours a week, earning $18 per hour. That's about $1440 a month. However, I have severe medical conditions that would normally cause me to be found disabled by Social Security. My doctor says I'm not able to work, even though I am working to pay my mortgage and utilities. Am I going to denied at Step 1, in spite of my severe medical problems?
https://www.ssa.gov/OP_Home/cfr20/416/416-0974.htm
- Question: What does Social Security expect me to do, quit work and starve to death while I wait months to see if they will approve my disability? Where's the common sense? ANSWER: Some of the Social Security regulations fail what many people think of as "common sense." However, the law is what it is and must be followed unless it is changed.
*There are exceptions to the SGA rules, so individuals considering an SSDI claim should consult with an attorney or Social Security professional. Some exceptions to the SGA rules could be, for example: A person is working in a sheltered environment where he/she does not have to perform the same work required of other employees because of accomodations. Or, an individual is doing subsidized work-- work that is being fully or partly paid for by someone other than the employer, such as a vocational rehabilitation agency, or other entity, and this work would not commonly be available in the competitive job market. Another example would be where an individual works for a family member (such as a parent) who makes the job available only as a favor to the family member without expecting normal productivity.
The information provided here is for information purposes only. No one should depend on this information in a particular claim, or situation, but should seek professional counseling about the best course of action. Social Security regulations are complex and change from time to time. Therefore, no website should be relied on in the absence of professional advice.
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