How would a lump sum from a settlement agreement affect your SDI, SSDI and SSI benefits?

If you sign a settlement agreement that waives your rights to sue and then received a lump sum for signing that document. Would this need to be reported to EDD for SDI or to Social Security for SSDI or SSI? I'm afraid to do so because of the confidentiality provisions.

1 answer  |  asked Jan 11, 2016 6:00 PM [EST]  |  applies to California

Answers (1)

Marilynn Mika Spencer
The settlement agreement might include a provision that allows you to disclose terms of the agreement for any reason required by law. Regardless, you have a legal duty to report income under certain circumstances. The obligation might vary depending on the reason for the settlement agreement. Your safest bet is to consult with an attorney with whom you can discuss the details in confidence.

To find a plaintiffs employment attorney in California, please go to the web site of the California Employment Lawyers Association (CELA). CELA is the largest and most influential bar association in the state for attorneys who represent working people. The web site is www.cela.org. Click on "Find a CELA Member" and you can search by location and practice area. Many CELA attorneys represent clients throughout the state.

I hope there is a good resolution to this situation.

posted by Marilynn Mika Spencer  |  Jan 16, 2016 11:13 PM [EST]

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