SHELTERED WORK & DISABILITY BENEFITS

Applying for Social Security Disability benefits can be overwhelming. One of the most difficult concepts in the process is how the SSA treats work and sheltered work. The SSA wants to know if you can still work. But, the SSA does not treat all work the same.

Many people with serious health problems try to continue working but only manage it because of help from an employer, family member, or friend.  For example, if a family member is your employer, then they may let you take extra breaks. Or, they may let you work fewer hours. This is “sheltered work.”

This type of work is very different from competitive employment. Additionally, it does not keep you from getting SSD benefits. Understanding what sheltered work is, and how the SSA evaluates it, can help you win your SSD benefits.

WHAT IS SHELTERED WORK?

Sheltered work refers to a job that the SSA does not consider to be competitive in the labor market. It usually involves accommodations or special changes to the work.

For example, your employer might allow you to rest whenever you need to. Or, you could work fewer hours than other employees. Another example is that you could get extra help to finish work tasks. In some cases, you may still earn the same amount of money as other employees, even though you may work at a slower pace.

The SSA recognizes that sheltered work exists to give people with disabilities the opportunity to work. Because of this, income from such work is not counted the same way as wages from a regular job. Additionally, if the only kind of work you can do is sheltered work, then you qualify for SSD benefits.

HOW THE SSA EVALUATES SHELTERED WORK

The SSA will look at both your current and past work. The SSA asks:

• Did you only keep the job because of special treatment or support?

• Did you have fewer hours  compared to other employees?

• Did you perform at a slower pace or have fewer responsibilities?

• Is it possible that your wages did not reflect your work?

If the answer is yes, then the SSA may determine that you are doing sheltered work.

For example, if you work for a relative who pays you full wages but allows you to miss several days each month, then that is sheltered work. Similarly, if you work in a community program where the focus is therapy or support, then that work may not count either. The SSA looks at whether your work shows you could perform a job under normal conditions. Normal conditions means 40 hours a week. It also means you take standard breaks during the workday.

SHELTERED WORK IS NOT PAST RELEVANT WORK

When deciding if you are disabled, the SSA also looks at whether you can return to your past relevant work. Normally, past relevant work includes jobs you performed in the last five years, as long as those jobs were substantial gainful activity.

But sheltered work does not count as past relevant work. That is because it is not performed under competitive conditions. If you only held onto a job because of special treatment, the SSA cannot use that job to argue that you are capable of returning to work.

This rule is very important for those who work in a family businesses or in jobs that offer special shifts. The SSA cannot use your ability to do sheltered work as evidence that you can work at a competitive job.

WHY SHELTERED WORK MATTERS FOR YOUR CLAIM

The SSA uses “substantial gainful activity” (SGA) to decide whether you are working. In 2025, the SGA limit is $1,550 per month in gross wages. If you earn a higher amount of money than that in one month, then the SSA will consider you to be working. They will not let you apply for benefits. If you have already filed an application, then they will deny your claim.

However, if your income comes from sheltered work, the SSA may not treat it as true SGA. This means you could still qualify for benefits even if you are technically earning money. The key factor is whether your work demonstrates that you can function in a normal job environment without special support. If you cannot, then your earnings may not prevent you from being found disabled.

TWO FORMS OF SOCIAL SECURITY BENEFITS

There are two forms of benefits for which you can file an application: Social Security Disability benefits and Supplemental Security Income benefits. You can file an application on Social Security’s website. Below is an explanation as to each type of benefit:

Social Security Disability Insurance (SSDI):  

SSDI benefits are for those who have worked and can no longer work at any job due to a medical condition. The amount of money you will receive from SSDI benefits is based on how much Social Security tax you paid during your work history. To qualify for SSDI benefits, you must have enough “work credits.”

A work credit is an amount of taxable income. You can earn up to 4 work credits per year. The amount of work credits you need will depend on how old you are when you apply. If you haven’t earned enough work credits for your age at the time you apply, then you can only apply for Supplemental Security Income benefits.

Supplemental Security Income (SSI):  

SSI is a needs based benefit and it is for those people with little to no income, such as children and the elderly. Anyone who makes more than a certain amount of money per month cannot receive SSI benefits. The SSA counts the income of those in your home with whom you share expenses, not just your income and assets.

If you have a spouse who earns more than $5000 a month, for example, then that income prevents you from getting SSI benefits. You cannot qualify for SSI benefits, no matter how severe your medical condition, if you do not meet the income and asset rules for SSI.

SHELTERED WORK AND PAST RELEVANT WORK

After you file an application for benefits, the SSA reviews your past jobs to decide if you can return to them. Normally, the agency considers all the jobs you had in the last five years. But because sheltered work is not competitive employment, it does not count as past relevant work. This is important because it means the SSA cannot use sheltered work to show that you are still capable of doing your old job.

For example, if you work for a family business and you miss several days a week due to illness, then the SSA will likely view this as sheltered work. The reason is most employers would fire you after missing multiple days of work. If the family business keeps you as an employee, then the SSA will see that job as sheltered work.

DOCUMENTING SHELTERED WORK

One of the most important things you can do is provide evidence about your work. You should explain the accommodations you receive and the reduced expectations placed on you. You should also describe any help you need from others to keep the job.

Statements from your employer, supervisor, or other workers can be helpful. These details allow the SSA to understand why your work does not reflect the ability to perform regular, competitive employment.

You may also need medical records that support your limitations. For example, if your doctor restricts you to two hour shifts or states you need two rest breaks every hour,  then these restrictions prove you are doing sheltered work. The SSA will weigh this information when they decide whether your wages count as SGA.

HOW OUR SSD LAW FIRM CAN HELP

The SSA denies many people benefits simply because they know they are earning some money. An experienced disability attorney can present your case clearly, showing that your work does not prove you can hold competitive employment.

At our SSD law firm, we understand how to document sheltered work. We will argue that the SSA should not use your income against you. We can gather evidence from your employer and from other workers. Also, we can obtain medical statements from your doctor that you require sheltered work. With the right preparation, we can help the SSA see that sheltered work is not a reason to deny your claim.

HIRE THE BEST SSD LAW FIRM

If you are working in a sheltered environment, then you may still qualify for SSD benefits. The key is to prove that your job is not competitive and that your earnings do not rise to the substantial gainful activity level. Sheltered work exists to support people with disabilities, not to prevent them from getting the help they need.

Our law firm has helped over 20,000 clients win their disability cases. We know how to explain sheltered work to the SSA and make sure you get the benefits you deserve. Contact us today for a free case review. Put our legal experience to work for you.

Over the last 30 years, we have won over $100 million in ongoing and past due SSD benefits. It has become difficult to win Social Security cases. That is why you need an attorney who focuses on Social Security law.

A lawyer can prepare you to answer the SSA’s questions. Preparation will help you win your case. Therefore, you should hire us. Contact us today. We can help you win SSDI and SSI benefits.