Washington How Social Security Benefits May Reduce Your Workers' Compensation Payments refers to a provision in Washington State law that allows Social Security disability insurance (SDI) benefits to be applied to a workers' compensation award. This provision can reduce the amount of money that an injured worker receives in workers' compensation benefits. In Washington, the Social Security Administration (SSA) pays out SDI benefits when an individual is unable to work due to an illness or injury, while workers' compensation benefits are provided to an injured worker as a result of a work-related injury or illness. Under Washington State law, the two types of benefits may be combined, and the SDI benefits may be applied to reduce the amount of workers' compensation payments. There are two types of Washington How Social Security Benefits May Reduce Your Workers' Compensation Payments: Offset and Reduction. The Offset provision allows the SSA to subtract an injured worker's SDI payments from their workers' compensation award. The Reduction provision allows the workers' compensation insurer to reduce the total amount of benefits that the injured worker is entitled to receive.