About 13,000 disabled workers previously declared ineligible for unemployment insurance are being sent mailed notices from the Wisconsin Department of Workforce Development notifying them they might be eligible for past benefits, worth potentially hundreds to thousands of dollars per person.
The DWD began processing nearly 10 years worth of unemployment claims from individuals who, under a 2013 state law, were previously declared ineligible for those benefits due to simultaneously receiving Social Security Disability Insurance (SSDI). But last year a court struck down that law.
That means thousands of people could receive financial compensation if they were either denied unemployment benefits or ordered to repay benefits they received between Sept. 8, 2015, and July 29, 2025, because the person collected SSDI.
A spokesperson for DWD said the total cost of the claims the agency may have to pay out is unclear right now. Individuals who receive unemployment insurance can receive a maximum of $370 per week for at most 26 weeks, which would be $9,620. But not every person files for the entire 26-week period. The current average is 13 weeks, the spokesperson said.
What led to this?
A federal judge in 2024 struck down the law that previously blocked individuals from receiving both SSDI benefits and unemployment insurance.
A spokesperson for DWD said it is mailing notices to individuals who may be eligible for past benefits, but warned that it will take time to process the claims from the designated time period.
While DWD is mailing about 13,000 notices, the agency doesn’t know how many people will actually reach out about filing a claim to receive the past benefits. Individuals must call DWD about their claim within 90 days of receiving a notice from the agency.
Where can I go for more information?
The DWD has a web page with guidance and answers to questions about the court order and individuals who may be eligible for past unemployment benefits.
People with questions can also contact a DWD Help Center phone number at 414-435-7069 or toll free at 844-910-3661 during business hours.
Wisconsin Watch is a nonprofit, nonpartisan newsroom. Subscribe to our newsletters for original stories and our Friday news roundup.
Unemployment among young U.S. workers is the highest it’s been in nearly four years.
Unemployment among young U.S. workers (those aged 16-24) was 10.5% in August 2025. That is the highest rate since February 2021 when it was 10.9%.
The World Health Organization ended the COVID-19 pandemic’s “global health emergency” status on May 5, 2023. However, prior to the pandemic, youth unemployment was higher than current levels from August 2007 to January 2016.
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A judge’s order promises compensation to potentially thousands of disabled workers who were denied unemployment benefits under a state law struck down as discriminatory.
The invalidated law prevented recipients of Social Security Disability Insurance (SSDI) from collecting unemployment insurance.
Two classes of workers may be eligible for compensation: those denied unemployment benefits after Sept. 7, 2015, and before July 30, 2025, under the invalidated law, and those who had to repay benefits they received during that period for the same reason.
A federal judge has ordered Wisconsin’s Department of Workforce Development to compensate disabled workers who were denied unemployment benefits under a state law struck down as discriminatory.
U.S. District Judge William Conley’s order promises relief to potentially thousands of workers affected by a 2013 Wisconsin law that banned recipients of federal disability aid from collecting unemployment compensation when they lost work.
But many details remain to be ironed out, including how quickly the state will reprocess a decade’s worth of denied claims and whether any claims should draw priority.
“Some work needs to be done yet to put the order into practice, and counsels for the class are working diligently to get to that point,” said Paul Kinne, one of the attorneys representing plaintiffs.
Conley issued his order Wednesday following a hearing in which attorneys representing workers and the state discussed remedies for denials under a law that Conley ruled violated the Americans with Disabilities Act and the Rehabilitation Act.
The overturned law 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.
Republican lawmakers who approved the law claimed in 2013 that simultaneously collecting disability and unemployment benefits represented “double dipping.” But SSDI guidelines have long allowed and even encouraged recipients to supplement their income with part-time work, so long as their earnings remain below the threshold of “substantial gainful activity.”
Conley’s order covers two classes: workers who were denied unemployment benefits after Sept. 7, 2015, and before July 30, 2025, due to receiving SSDI, and those who had to repay benefits they received during that period for the same reason.
Not every class member is automatically entitled to benefits, Kinne said, and it may take time to determine eligibility. That’s due to a variety of factors, including potential difficulties in retrieving and analyzing past claims data — and locating the claimants. Still, Kinne expects an “overwhelming majority” of class members to be compensated.
In addition to receiving compensation for past denied claims, class members can file certifications for subsequent weeks in which they were told they were ineligible to file. These certifications should be submitted within 90 days of receiving notice from the department, the order said.
Eugene Wilson of Madison, Wis., receives federal Social Security Disability Insurance due to health issues that prevent him from working full time. After he lost his part-time job during the pandemic, the state denied his unemployment claim — citing a law that banned workers on disability from collecting unemployment insurance. He’s among workers who may be eligible to be compensated for past denials after a federal judge struck down the ban. He is shown with his dog Kane on Aug. 18, 2025. (Brad Horn for Wisconsin Watch)
The order also states that claimants who were charged with unemployment fraud for not properly disclosing their SSDI status will be eligible for benefits they had to repay.
Class members who received federal Pandemic Unemployment Assistance (PUA) — aid for people who lost work during the COVID-19 pandemic but didn’t qualify for regular benefits — will not receive additional benefits for weeks in which they already received pandemic aid. PUA claims were paid at a higher rate than regular benefits, Conley’s order states, and federal law bans the collection of both.
The Department of Workforce Development will begin notifying affected workers by Oct. 1, the order said. The parties must still agree on the language for those notifications, which should inform affected workers about the outcome of the lawsuit and how to claim benefits to which they should be entitled.
“I was generally pleased with the order,” Kinne said. “There is now light at the end of the tunnel for disabled people to receive the unemployment compensation that they should have received in the past.”
Wisconsin Watch is a nonprofit, nonpartisan newsroom. Subscribe to our newsletters for original stories and our Friday news roundup.
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A 2013 state law prevented recipients of federal Social Security Disability Insurance from collecting state unemployment insurance after losing part-time work.
A federal judge struck down the law, ruling that it had “disparate impact on disabled workers seeking unemployment insurance benefits.”
A hearing will explore whether and how the state should compensate workers for past denied claims.
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.
Eugene Wilson is shown with his dog Kane on Aug. 18, 2025. He has tried for years to return to the workforce, but he rarely hears back after filing applications. (Brad Horn for Wisconsin Watch)
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.”
James Trandel, center, is seen at American Family Field with a group of baseball fans. Trandel works as a gate chief for the Milwaukee Brewers, helping with tickets and security. (Courtesy of James Trandel)
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 lost her job during the pandemic and depended in part on Social Security Disability Insurance to survive. She spent six months fighting to receive her Pandemic Unemployment Assistance claim after being denied regular unemployment insurance, initially unaware of a state law that banned people on disability from collecting unemployment aid. “It really made me feel less than others,” Barrera said. (Courtesy of Jessica Barrera)
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.”
Confused about the unemployment system?
Forberger created this primer to help workers navigate the complicated process of filing unemployment claims and participating in the system.
Wisconsin Watch is a nonprofit, nonpartisan newsroom. Subscribe to our newsletters for original stories and our Friday news roundup.
In the early days of the COVID-19 pandemic, when many businesses closed or laid off workers, a massive influx of 8.8 million unemployment claims overwhelmed Wisconsin’s aging unemployment insurance system.
That created a backlog of hundreds of thousands of claims. Many potential applicants weren’t able to connect to the department’s call center to complete the process, and some Wisconsinites waited months without receiving a single unemployment payment.
Following those backlogs, the state has made strides to update the system and move away from outdated, decades-old computer systems, said state Department of Workforce Development Secretary Amy Pechacek.
She said DWD now has a digital portal for people to file unemployment claims and send documents online. The department also uses online chatbots to respond to questions in multiple languages, as well as uses artificial intelligence tools to assist with data entry.
“With these enhancements, the department is now paying 88% of all claims filed within three days or less,” Pechacek said. “That other 12% of claims that go a little bit longer are typically just because we have to do investigations if there’s some discrepancies between what the claimant and the employer are saying.”
In a letter to the Trump administration on Tuesday, Gov. Tony Evers said the administration is blocking nearly $30 million in federal funding to Wisconsin, which could prevent the state from finishing the project and potentially leave it vulnerable to cyberattacks and fraud.
“If the Trump Administration does not reverse course and provide the $29 million Wisconsin expected to receive, the state will not be able to complete its UI system modernization project,” Evers wrote to U.S. Labor Secretary Lori Chavez-DeRemer.
That funding was part of the American Rescue Plan Act, a pandemic recovery law signed by former President Joe Biden, and was being primarily used on anti-fraud measures, according to the governor’s office. Evers’ letter says the U.S. Labor Department “suddenly terminated” the funding in late May.
The termination halted work on identity authentication tools, a digital employer portal, artificial intelligence enhancements, fraud prevention and cybersecurity tools, according to Pechacek. She said the employer portal was the DWD’s next major rollout and would have made it easier for employers to provide information to the state.
“The employer portal is really one of the largest losses from this federal action,” Pechacek said. “Our employers … have to submit quarterly wage information (and) verify claim information, and some of those components are still very antiquated.”
Evers wrote that the Department of Labor “cited no objections” to those initiatives beyond “an unsupported assertion that they ‘no longer effectuate the Department’s priorities.’”
Pechacek said the state has already spent “slightly over half” of the $29 million. She said those grants were “reimbursement-based,” meaning the state first had to spend the money and then be paid back by the federal government.
“There are seven projects that have now been paused in a variety of different states of completion, so those are sunk costs,” she said. “Without realizing the full modernization effort, we can’t roll those projects out.”
The state appealed the Labor Department’s termination and received a letter from the federal government in late July that “acknowledged the appeal while restating the Department’s earlier basis for termination,” the governor’s letter states.
“The people of Wisconsin deserve systems that function, state of the art, with high integrity and accuracy,” Pechacek said. “We are also going to pursue litigation to reclaim the funds which were rightfully awarded to us already and improperly rescinded.”
In addition to the $29 million in lost funding, the project was using $80 million from a different program under the American Rescue Plan Act, according to a report sent to the Legislature’s budget committee. The document states that the $80 million has not been impacted but is “insufficient to support the full modernization work.”
Pechacek said DWD has also asked the state Legislature to allocate additional state funds toward finishing the effort but said there hasn’t been much movement on that front.
Wisconsin isn’t the only state that’s had federal funding to upgrade unemployment systems clawed back by the Trump administration. In May, Axios reported the White House terminated $400 million of that funding across the country. A July report from state agencies said $675 million in grants awarded to unemployment programs in over 30 states and territories had been terminated.
The U.S. Department of Labor did not immediately respond to WPR’s request for comment. In May, the federal agency told Axios in a statement that the unemployment modernization funding was “squandered” on “bureaucratic and wasteful projects that focused on equitable access rather than advancing access for all Americans in need.”
In the letter, Evers also said failing to complete Wisconsin’s modernization effort would put the state’s unemployment system at risk of becoming overwhelmed again during any future economic downturn. He says that would “create acute hardship for Wisconsin families.”
“It is our obligation to prevent this scenario from coming to pass,” Evers wrote. “I urge you to reverse the decision to defund these critical government efficiency and fraud prevention initiatives.”
Pechacek said the state isn’t reverting back to old technology in the pieces of the modernization that have already been completed in “major areas.” But she said failing to fully finish the effort poses a risk to Wisconsinites because there are still aspects of the system running on an outdated coding language.
“Any time we don’t fully invest in upgrading and reach the programmatic goals that we have set to get fully off of the antiquated systems, we are at risk to be overwhelmed again,” she said. “All of that leads us to be more vulnerable, in a time of significant increase of accessing the system, to the cyber attacks, to fraudulent efforts, to being compromised.”
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