COLORADO COURT OF APPEALS 
_________________________________________________________________ 
Court of Appeals No.: 04CA1514 
Industrial Claim Appeals Office of the State of Colorado 
DD No. 28872004 
_________________________________________________________________ 
Carmen N. Cericalo, 
Petitioner, 
v. 
Industrial Claim Appeals Office of the State of Colorado and 
Division of Employment, 
Respondents. 
_________________________________________________________________ 
ORDER AFFIRMED 
Division II 
Opinion by: JUDGE TAUBMAN 
Rothenberg and Russel, JJ., concur 
Announced: April 7, 2005 
_________________________________________________________________ 
Carmen N. Cericalo, Pro Se 
John W. Suthers, Attorney General, Laurie Rottersman, Assistant 
Attorney General, Denver, Colorado, for Respondents 
No Appearance for Division of Employment

In this unemployment benefits case, petitioner, Carmen N. 
Cericalo (claimant), seeks review of a final order of the 
Industrial Claim Appeals Office (Panel). At issue in this appeal 
is the propriety of the action taken by the Division of 
Employment reducing or offsetting claimant’s unemployment 
benefits by half the amount of his Social Security Disability 
Insurance (SSDI) benefits, rendering him ineligible to receive 
any unemployment benefits pursuant to § 873110(3)(a)(I)(A), 
C.R.S. 2004. Because we conclude the offset was proper, we 
affirm. 

Section 873110(
3)(a)(I)(A) provides, in pertinent part, 
that an individual’s weekly amount of unemployment benefits 
"shall be reduced (but not below zero) by . . . [f]ifty percent 
of the prorated weekly amount of a primary insurance benefit 
under Title II of the federal ‘Social Security Act’ that has been 
contributed to by a base period employer, because the employee 
has made contributions to federal social security." Thus, 
pursuant to § 873110(3)(a)(I)(A), the unemployment benefits 
otherwise payable to a claimant must be reduced or offset by half 
of the prorated amount of such federal social security benefits 
received by that claimant. 

The relevant facts are not in dispute. Claimant suffers 
complications of diabetes, including blindness and other physical 
disabilities, and has been receiving SSDI benefits for a number 
of years. After claimant was laid off from a parttime 
job of eight hours per week he obtained to supplement this income, he 
sought and received unemployment benefits attributable to that 
employment. The Division of Employment later learned that 
claimant was receiving SSDI benefits, and a deputy ruled that, 
because of the offset, claimant could not be paid unemployment 
benefits pursuant to § 873110(3)(a)(I)(A). 

At a hearing, claimant confirmed that he was receiving 
$1,347 per month in SSDI benefits and that such benefits were 
based on previous contributions to the federal Social Security 
system from working and were not based on financial need. 
Claimant also testified that the Social Security Administration 
allowed him to earn up to $1,200 per month without affecting his 
receipt of SSDI benefits. Claimant’s monthly SSDI benefit 
amounts to $311 per week when prorated, and because half that 
amount exceeded his weekly amount of $108 in unemployment 
benefits, claimant was ineligible to receive any unemployment 
benefits based on the application of the offset requirements of § 
873110(3)(a)(I)(A). 

The hearing officer found that claimant’s SSDI benefits were 
paid under Title II of the federal Social Security Act and were 
contributed to by claimant and his base period employer. 
Consequently, the hearing officer ruled that the statutory offset 
requirements applied to claimant’s SSDI benefits and rendered him 
ineligible to receive unemployment benefits. Claimant also 
argued that application of this offset violated his rights under
the federal Americans with Disabilities Act (ADA), 42 U.S.C. § 
12101, et seq., prohibiting discrimination based on disability. 
The hearing officer rejected this argument that he was being 
discriminated against in violation of the ADA in this regard. 
On review, the Panel affirmed, concluding that the record 
supported the determination that claimant’s unemployment benefits 
were properly reduced pursuant to § 873110(3)(a)(I)(A). The 
Panel did not address claimant’s ADA arguments, ruling that it 
lacked the authority to determine whether the state statutory 
requirements were preempted by the federal statute under the 
Supremacy Clause, U.S. Const. art. VI, cl. 2. 

I. 
To the extent that claimant challenges the applicability of 
the statutory offset requirements to his circumstances, we reject 
such challenge. 

The SSDI benefits claimant receives are provided pursuant to 
42 U.S.C. § 423, under Title II of the federal Social Security 
Act. Thus, the hearing officer and the Panel properly ruled that 
§ 873110(3)(a)(I)(A) requires that claimant’s unemployment 
benefits be reduced by half of the prorated weekly amount of his 
SSDI benefits, resulting in his ineligibility to receive any 
unemployment benefits. 

The offset requirements of § 873110(3)(a)(I), C.R.S. 2004, 
are patterned after and complementary to the analogous provisions 
of the Federal Unemployment Tax Act (FUTA). See Redin v. Empire
Oldsmobile, Inc., 746 P.2d 52 (Colo. App. 1987); compare § 873110(
3)(a)(I) with 26 U.S.C. § 3304(a)(15) (FUTA provisions). 
Other courts have also held that unemployment benefits must 
be reduced because of the receipt of federal SSDI benefits under 
similar state unemployment law provisions and these FUTA 
provisions. See Florence v. Dep’t of Workforce Servs., 35 P.3d 
1148 (Utah Ct. App. 2001)(reduction of unemployment benefits by 
receipt of SSDI benefits required by Utah law and permitted by 
federal law under FUTA provisions); Virginia Employment Comm’n v. 
Nunery, 24 Va. App. 617, 484 S.E.2d 609 (1997)(reduction of 
unemployment benefits by receipt of SSDI benefits required both 
by Virginia law and by overwhelming majority of jurisdictions 
considering the issue (collecting cases)); see also Edwards v. 
Valdez, 789 F.2d 1477 (10th Cir. 1986)(assuming Social Security 
offset applies to Colorado statute while rejecting employee's 
specific challenge to its application). 

We agree with these decisions and reach the same conclusion. 

II. 
We also reject claimant’s argument that the application of 
the SSDI offset to deny him unemployment benefits violates the 
ADA provisions prohibiting discrimination based on disability. 
Title II of the ADA generally prohibits discrimination 
against individuals with disabilities by public entities in 
providing public services. See Bradshaw v._Cherry Creek Sch. 
Dist. No. 5, 98 P.3d 886 (Colo. App. 2003). Specifically,
pursuant to 42 U.S.C. § 12132, a qualified individual with a 
disability cannot, "by reason of such disability," be excluded 
from participation in or be denied the benefits of the programs 
of a public entity or be subjected to discrimination by any 
public entity. 

In our view, however, claimant has not been improperly 
denied benefits or discriminated against on the basis of his 
disability in violation of the ADA. 

First, as noted, the unemployment compensation offset under 
§ 873110(3)(a)(I)(A) is based on receipt of "a primary 
insurance benefit under Title II of the federal 'Social Security 
Act' that has been contributed to by a base period employer." 
Benefits under Title II of the Social Security Act, 42 
U.S.C. §§ 401, et seq., are referred to as Old Age Survivors and 
Disability Insurance (OASDI) benefits and are provided to the 
retired, the disabled, and their dependents. See C. Courtade & 
M. Flaherty, Social Security Law and Practice § 1:1 (2000). 
Under Title II, workers who have contributed to the Social 
Security program and who, because of a disability, are unable to 
engage in substantial gainful activity are entitled to receive 
SSDI benefits. See 42 U.S.C. § 423(a)(1)(D), (d)(1)(A); Florence 
v. Dep't of Workforce Servs., supra. Fully insured workers may 
receive Title II benefits when they retire at age sixtytwo 
or later. See Courtade, supra, § 1:33.

Primary insurance benefits are those paid directly to the 
worker on the basis of his or her work history, as opposed to 
auxiliary benefits, which are paid to a deceased worker's 
surviving family members. See Trusty v. Consol. Freightways, 210 
Mont. 148, 681 P.2d 1085 (1984). 

Both SSDI and retirement benefits are based on contributions 
by a base period employer. See Edwards v. Valdez, supra; 
Florence v. Dep't of Workforce Servs., supra. 
Accordingly, because § 873110(3)(a)(I)(A) applies the 
offset both to individuals receiving SSDI benefits and to those 
receiving retirement benefits, it does not discriminate against 
claimant on the basis of a disability. 

Second, in addition to SSDI, the Social Security 
Administration operates a separate program for people with 
disabilities, Supplemental Security Income (SSI), under Title XVI 
of the Social Security Act. See 42 U.S.C. § 1381, et seq. The 
disability requirements for receipt of SSI benefits are the same 
as those for SSDI benefits, but receipt of SSI is not based on 
past earnings. See, e.g., Holden v. Heckler, 584 F. Supp. 463 
(N.D. Ohio 1984). Consequently, the offset under § 873110(
3)(a)(I)(A) also does not discriminate against people with 
disabilities because it applies only to those who receive SSDI 
disability benefits, not those who receive SSI disability 
benefits.

Thus, we perceive no violation of the nondiscrimination 
provisions of the ADA by the application of the statutory offset 
requirements that rendered claimant ineligible to receive any 
unemployment benefits. See 42 U.S.C. § 12132. 

III. 
Because claimant has not established any ADA violation, 
there is no basis for determination that § 873110(
3)(a)(I)(A) is preempted by that federal statute and is thereby 
unconstitutional, as requested by claimant. 

To the extent that claimant further contends that § 873110(
3)(a)(I)(A) is otherwise unconstitutional, we also reject his 
contentions. See Edwards v. Valdez, supra (rejecting equal 
protection constitutional challenge to social security offset 
requirements of comparable FUTA provisions); see also Johnson v. 
Div. of Employment, 191 Colo. 38, 550 P.2d 334 (1976)(rejecting 
equal protection constitutional challenge to previous version of 
offset requirements of § 873110(3)(a)(I)). 

IV. 
Whether claimant was overpaid as a result of the 
ineligibility determination and, if so, whether a waiver of the 
recovery of that overpayment is warranted, were not adjudicated 
in the administrative proceedings here. Consequently, these 
issues are not properly before us in this appeal. See § 874107(
1), C.R.S. 2004.


The Panel’s order is affirmed. 
JUDGE ROTHENBERG and JUDGE RUSSEL concur.