Did my state labor department stop my unemployment checks because I filed for disability?

Question: I am collecting California unemployment and have been since March.  I am a disabled vet with bipolar.  I have seen a psychiatrist for years and his recommendation is to stop working now at 50 years old or find something smaller that maybe I can handle.  My wife filled out the SS disability application and about the same time, California missed an unemployment payment.  Can California see I have applied for SSDI and stop my unemployment payments? I have a family of 5 and need to work until I can get disability.  
Answer: You are in a tough but unfortunately common situation. I don’t know whether Social Security reports disability payments to the California Employment Development Department (EDD), but in some circumstances, you can legally collect SSDI and unemployment insurance at the same time. In California, you can receive unemployment benefits even if you are able to do part-time work only, and for SSDI, you can get disability if you aren’t able to do full-time work. So, the program rules aren’t necessarily incompatible. However, if the jobs you’ve been applying for are full-time jobs and you submit them to the EDD, this may cause a problem, since you are telling EDD that you are willing and able to work full time but you’re telling Social Security you are not able to work full time. (For more on this, see my blog post on unemployment and disability.) I would call EDD and ask why a payment was skipped. If the agency did terminate your benefits, you can appeal its decision.
Keep in mind that you will be immediately denied SSDI if you start to work before being approved for benefits and you earn more than $1,070 per month (unemployment benefits are not counted toward this limit) at any time after you apply for disability. (This is different from VA disability compensation, where you can still work and collect benefits. By the way, if it’s possible that the time you served aggravated your bipolar disorder, you could be eligible for VA service-connected compensation.)
There is one exception to the Social Security rule that you can’t work after you apply for benefits — if you attempt to work for a short period of time and fail because of your disability (called an unsuccessful work attempt, or UWA), you can still receive disability benefits for this time period. (For more information on what qualifies as a UWA, see my blog post on unsuccessful work attempts.)
Finally, you should know that it’s not easy to get Social Security disability benefits for bipolar disorder. It’s not unlikely you’ll be denied benefits the first time and you’ll have to appeal Social Security’s decision. So you may need to plan to be without income for longer than three to six months. For help on how to win benefits for your condition, see Nolo’s article on getting disability for bipolar.