Facing a layoff or termination, and think you might be disabled?
- Matthew Maddox
- Mar 29, 2023
- 13 min read
Updated: May 29

Layoffs can complicate the process of filing for short term disability and long term disability benefits. First, your insurance company will argue that your coverage ended when your employment ended. Second, other terms of your disability insurance policies may complicate your ability to file a disability claim.
The specific provisions in your disability insurance policy will dictate which steps you need to take to ensure you receive the benefits you are entitled to. However, no matter the specific terms of your disability insurance policy, time is of the essence.
If you believe you may be disabled and are facing a possible layoff, it is important to take swift action to protect your rights. One of your rights is to file a short term disability claim and then long term disability claim if you have a medical condition that prevents you from being able to continue working.
In this article, we’ll answer questions about filing for short term or long term disability in the face of job termination, how your employment status affects your eligibility for benefits, and how The Maddox Firm can help you secure your benefits.
Does My Disability Coverage End When My Job Ends?

Yes. The short term and long term disability coverage provided through your employer generally ends on the date your employment is officially terminated. This is a critical point: once your job ends, so does your eligibility to file a new disability claim under that employer-sponsored policy. If you haven’t filed your claim before your coverage ends, your claim could be denied simply because you’re no longer covered.
However, there is an important exception. If you became disabled before your termination date—even if you hadn’t filed a claim yet—you may still be eligible for disability benefits. Your eligibility depends on your effective date of disability, not necessarily the date you file the claim.
Courts have said that there is no “logical incompatibility between working full time and being disabled from working full time” because “a desperate person might force himself to work despite an illness that everyone agreed was totally disabling.” Hawkins v. First Union Corp. Long-Term Disability Plan, 326 F.3d 914, 918 (7th Cir. 2003) (Posner, J.). If you were pushing yourself to continue working, despite your inability to actually perform your job, you may have a valid disability insurance claim. In other words, your decision to continue working despite your impairments does not automatically disqualify you from claiming disability benefits. If your condition had already reached a point where you were unable to reliably or safely perform your job duties, you may be considered disabled under your policy—even if you were still showing up to work.
To qualify for benefits, you’ll need to establish that your disabling condition began while you were still covered by the policy. This is a fact-specific inquiry and may involve reviewing:
Medical records showing symptom onset or functional limitations
Doctor’s notes or certifications dated prior to your termination
Work attendance records or performance issues linked to your condition
Emails or communications documenting your health struggles
Witness statements from coworkers or supervisors
If your condition worsened gradually or wasn’t formally diagnosed until after termination, that doesn’t necessarily mean you’re ineligible—but you’ll need strong evidence to show your disabling symptoms were already present and affecting your ability to work before your coverage ended.
Because the distinction between being “covered” and being “disabled while covered” can be legally nuanced, it’s best to consult with a disability attorney as early as possible. They can help analyze your timeline, gather supporting evidence, and make sure your claim is aligned with your policy’s requirements.
If you think you may be laid off or terminated, it’s important to contact a long term disability attorney sooner rather than later to devise a strategy to protect your disability claim. Your long term disability attorney will review your disability plan or policy, paying particular attention to certain provisions that can be complicated by a layoff or termination.
What If My Employer Fires Me Before I Apply for Disability Benefits?

If your employer terminates your employment before you apply for disability benefits, you may still have options—but the situation becomes more complicated. Most employer-provided short term disability and long term disability plans contain two key requirements that are triggered at the time your disability begins: the “actively at work” provision and the “eligible participant” provision.
Actively at Work Provision
Nearly all group disability policies require that you be “actively at work” on the date your disability begins in order to qualify for coverage. This means you must be performing the regular duties of your job, typically for a minimum number of hours per week—commonly at least 20 hours. The idea is that you must be employed and functional at the time your condition becomes disabling.
If you’re fired or laid off before your disability is documented or certified, your insurance company may argue that you were not actively at work when the disability began. This is especially problematic when terminations occur without warning. In such cases, you may not have had the opportunity to see your doctor, get a disability certification, or even recognize that you were eligible for benefits.
Eligible Participant Provision
In addition to being actively at work, you also must typically be classified as an “eligible participant” in the disability plan when your disability begins. This status ends the moment your employment ends. Unlike health insurance, which can often be continued through COBRA after termination, short term and long term disability coverage typically does not continue after you lose your job. If your disability arises after your termination date—or you can’t prove it began beforehand—you may be denied benefits on the grounds that you were no longer an eligible participant.
Working While Disabled
Still, there is an important exception. As mentioned earlier, courts recognize that people often work while already suffering from disabling conditions. You may have been pushing through significant symptoms or impairments while still meeting the technical requirements of being “actively at work.” This means that even if you were fired before applying for benefits, you may still qualify if you can show that your disability began while you were still employed and actively working.
To make that case, you’ll likely need:
Documentation from a treating physician stating your condition was disabling as of a date before your termination
Evidence of reduced job performance, increased absences, or accommodations
Medical records or appointment logs prior to termination
Witness statements from supervisors or coworkers who observed your decline
Because disability insurers closely scrutinize the timing of when your condition became disabling, acting quickly is essential. Waiting until after your employment has ended to seek medical certification or initiate a claim can seriously jeopardize your eligibility for benefits. Once you’re no longer covered under your employer’s disability plan, it becomes significantly harder to prove that your disability began while you were still eligible—especially if your insurance company interprets your termination as the end of your coverage.
If you’re still working but struggling with your health—or if you suspect a layoff or termination may be imminent—consulting an experienced disability insurance attorney before you lose your job can make all the difference. A knowledgeable attorney can examine your disability policy, help you take proactive steps to get your disability certified before your coverage ends, and develop a legal strategy to preserve your right to file a claim, even if your termination happens unexpectedly.
Disability claims that intersect with job loss are among the most legally complex—and insurers often look for any technicality to deny coverage. An experienced attorney can help you navigate this delicate process, protect your benefits, and position your claim for the strongest possible outcome.
What If I Have a Pre-Existing Condition?

If you have a medical history that includes treatment or symptoms before your coverage began, you’ll want to pay close attention to the “pre-existing condition” and “waiting period” clauses in your long term disability policy. These provisions can create additional hurdles to qualifying for benefits—and layoffs or terminations can make them even more difficult to satisfy.
Pre-Existing Condition Clause
Most long term disability plans exclude coverage for medical conditions that were diagnosed, treated, or symptomatic during a specific time frame before your coverage began. The time frame for pre-existing condition clauses will depend on the specific terms of your policy. If your disability is tied to a condition that falls within that “lookback” period, your insurance company may deny your claim on the basis that it was pre-existing.
However, many plans will still cover pre-existing conditions after you’ve been continuously covered for a certain period of time, usually 12 months. If you become disabled before that window ends—especially if you’re laid off partway through the year—you may never reach the point where your pre-existing condition is covered.
Elimination Period Clause
In addition to the pre-existing condition clause, many plans also impose a waiting period before you can file a disability claim (often referred to as the “elimination period”). This is often a 30- to 180-day window starting from your hire date or coverage start date during which you are not eligible to receive benefits, even if you’re disabled. However, it’s important to look at the specific language in your policy to determine the time frame of your elimination period.
A layoff or termination that occurs before you complete this elimination period can leave you ineligible for coverage altogether—even if you were actively working and experiencing symptoms. In some cases, termination cuts short the timeline before you even have the chance to qualify.
Why Timing Matters
Because both the pre-existing condition and elimination period clauses are tied to specific dates, your ability to access disability benefits may depend entirely on whether you’re still employed and covered long enough to satisfy these policy requirements.
If you suspect that a layoff is coming and you have a condition that might trigger one of these clauses, it’s critical to:
Review your plan’s language carefully
Document your symptoms and treatment timelines
Consult with a doctor who can help clarify the onset and severity of your condition
Speak with a disability insurance attorney to explore whether an early claim is advisable
The timing of your claim—and the way it is documented—can mean the difference between approval and denial when pre-existing conditions are involved.
Can My Employer Fire Me for Filing for Short Term Disability?

Some short term disability and long term disability plans include provisions that allow benefits to be terminated if you are fired “for cause.” These clauses are rare, but not unheard of, so it’s important to review your plan documents carefully. If such a clause exists, your insurance company may attempt to deny or cut off your benefits based on the circumstances of your termination. However, even when a “for cause” clause is present, your employer and insurer must still prove that the termination was legitimate and not used as a pretext to deny your benefits.
It’s also important to understand that short term disability benefits do not protect your job. Unlike the Family and Medical Leave Act (“FMLA”), which provides job protection for up to 12 weeks of unpaid leave for certain medical conditions, short term disability insurance is a wage replacement benefit—not a job protection law. That means your employer can still legally terminate your employment while you are receiving short term disability benefits, particularly in cases of restructuring, layoffs, or unrelated performance issues.
Your employer cannot, however, fire you to interfere with your ability to make a claim for disability benefits or to retaliate for making a claim for disability benefits. Section 510 of the Employee Retirement Income Security Act of 1974 (“ERISA”) allows lawsuits by an employee against their employer if the employer terminated the employee for the purpose of interfering with the employee’s right to benefits or if the employer retaliated against the employee for attempting to access employee benefits.
In other words, while your job isn’t automatically protected by your disability claim, your right to apply for and receive benefits is protected under federal law. If your employer terminates you after you express an intent to file for disability or shortly after submitting a claim, and the timing appears suspicious, it could give rise to a valid legal claim. Courts will look closely at whether your employer had a legitimate, documented reason for the termination or whether the action was meant to cut off your access to benefits.
To protect yourself, consider taking the following steps if you’re worried about retaliation:
Put your disability-related communications in writing: Email your employer or HR department when you notify them of your need for leave or intent to file a claim.
Consult with your doctor promptly: Ensure your disabling condition is documented and that your physician supports your claim.
Review your plan and employment policies: Know your rights and obligations under both your disability policy and your employee handbook.
Seek legal guidance early: If you sense hostility or suspect retaliation, a disability or employment attorney can advise you on next steps and help preserve your claim.
While short term disability doesn’t provide job security, federal protections like ERISA can help safeguard your access to the benefits you’re entitled to—and hold employers accountable if they try to interfere.
Should I Apply for Unemployment?

No. If you are planning to file for short term or long term disability benefits, you should not also apply for unemployment. Doing so can seriously undermine your disability claim.
To qualify for unemployment benefits, you typically must certify that you are ready, willing, and able to work, and that you are actively seeking employment. These statements are fundamentally inconsistent with a disability claim, where you must demonstrate that a medical condition prevents you from working. Filing for both at the same time sends mixed signals: on the one hand, you’re claiming you can’t work due to disability; on the other, you’re telling the state you’re available for work. This contradiction can lead your insurance company to deny your disability claim, arguing that your own statements prove you’re not truly disabled.
Even though your disability policy may only require that you’re unable to perform your own occupation—not necessarily any occupation—filing for unemployment still creates unnecessary confusion. Your insurance company may not accept that distinction and may use your unemployment application to question your credibility, suggesting you’re exaggerating your limitations or misrepresenting your abilities.
The bottom line: filing for unemployment while pursuing disability benefits can backfire. The short-term financial gain is rarely worth the long-term risk to your claim.
If you believe you’re disabled and unable to continue working in your current job, your energy is best spent preparing a strong, well-documented disability claim—not juggling conflicting benefit applications.
See Your Physician
If you think you may be disabled—especially if there’s a chance your employment could end soon—it’s critical to consult with your doctor right away. A physician must certify that you’re disabled for your short term or long term disability claim to be considered. This certification must typically occur before your last day of employment, while you’re still covered under your employer’s disability plan.
Seeing your doctor early and often ensures that your symptoms and limitations are properly documented. These records will form the foundation of your claim. Be honest and thorough with your doctor about how your condition affects your ability to work. Describe specific tasks you can no longer perform, the severity of your symptoms, and how your functioning has changed over time.
If you wait too long—or if your doctor hasn’t clearly documented your disability prior to your termination—you risk losing eligibility for benefits altogether. Ongoing care and timely documentation are key to protecting your rights and building a successful claim.
Preserve Important Documentation
When preparing for a disability claim during or before a layoff, documentation is your strongest defense. You should begin collecting and organizing key records as early as possible, including:
Medical records: Office notes, diagnostic tests, referrals, and letters from your doctors that explain your symptoms and limitations
Workplace communications: Emails to HR or your supervisor about your condition, accommodations requested, or changes in performance
Timesheets and attendance logs: Evidence of reduced hours, sick days, or job modifications
Insurance plan documents: A copy of your short term and long term disability policies, including the summary plan description
Termination paperwork: Your separation notice, severance agreement, and COBRA materials
Having a complete file allows your doctor, attorney, and insurer to clearly see how your condition impacted your ability to work—and when. It also helps you respond quickly to requests for evidence and ensures nothing important is lost in the shuffle of a job transition.
Seek Legal Advice
Navigating a disability claim while facing job loss is legally complex—and the decisions you make now can impact your eligibility for benefits down the road. An experienced long term disability attorney can help you understand the nuances of your plan, ensure you meet key deadlines, and avoid common mistakes that lead to denials.
Legal counsel is especially important if:
You expect your job may end soon and haven’t filed a claim yet
Your symptoms worsened after you were hired and may fall within a pre-existing condition clause
You’re unsure whether your disability qualifies under the plan’s definition
You’re considering signing a severance agreement or waiver of claims
Early legal advice can help you avoid missteps that are difficult—or impossible—to fix later on.
The Maddox Firm Can Help

It is important to consult with a lawyer if you believe that you may be facing a possible layoff and are disabled. A lawyer can help review your insurance plan, provide advice on how to best move forward, and ensure that any necessary steps are taken in order to maximize the amount of benefits you receive. Your lawyer can also help you understand the process of filing for long term disability benefits and make sure that you receive all of the coverage that is due to you.
Protecting your rights after a layoff or other termination of employment is an important step in ensuring that you are able to continue receiving the benefits you are entitled to. Working with a lawyer experienced with your disability insurance company, and with your conditions and symptoms can ensure that you are able to secure the long term disability benefits you deserve.
If you’re navigating the uncertainty of a job termination while also dealing with a disabling medical condition, you don’t have to go through it alone. The Maddox Firm is experienced in guiding clients through the intersection of employment loss and disability claims. We can help you protect your rights, preserve your eligibility for benefits, and build a strong case from the start.
We Examine Your Policy and Assess Your Claim: We review the specific language in your short term and long term disability plans—including “actively at work,” “eligible participant,” and “pre-existing condition” clauses—to determine how your termination may impact your eligibility. We’ll assess whether your condition qualifies under your policy and help you pinpoint the date your disability began to strengthen your claim.
We Handle All Communications with Your Insurance Company: If your insurer questions whether your disability began before your termination, we will respond with detailed, timely evidence and manage all back-and-forth communications. We’ll advocate for your position and prevent you from making statements that could harm your claim.
We Help You Obtain Evidence to Support Your Claim: From coordinating medical statements with your physicians to gathering workplace records, we help you build a comprehensive file that shows your disability began while you were still covered. This includes working with your doctors to date the onset of your condition and obtain records that counter any “coverage ended” denials.
We Handle Appeals and Litigation: If your claim is denied due to the timing of your termination or other plan provisions, we will file a thorough administrative appeal and, if necessary, represent you in litigation. We have extensive experience challenging denials based on post-termination disability dates and technical plan interpretations.
Whether you are looking for assistance in navigating the claims process, appealing a claim denial, or litigating a final adverse decision, The Maddox Firm can help. The team at The Maddox Firm will look over your insurance policy, correspondence from your insurance company, medical records, and any other relevant documentation to give you personalized guidance on how we can help you win your short and/or long term disability claim.