Hayes

MEMORANDUM ****

Sherry A. Hayes (“Hayes”) appeals the district court’s order and judgment affirming an Administrative Law Judge’s (“ALJ”) decision denying her application for disability insurance benefits and Supplemental Security Income (“SSI”) payments under Titles II and XVI of the Social Security Act. We have jurisdiction pursuant to 28 U.S.C. § 1291 , and we reverse the district court’s order and judgment, and remand for the reasons stated below.

We review de novo a district court’s judgment affirming the Commissioner’s denial of benefits. See Schneider v. Comm’r of Social Sec. Admin., 223 F.3d 968, 973 (9th Cir.2000). We may set aside a denial of benefits “only if it is not supported by substantial evidence or is based on legal error.” Morgan v. Comm’r of Social Sec. Admin., 169 F.3d 595, 599 (9th Cir.1999) (internal quotation marks omitted).

The ALJ in his decision found that Hayes had three severe impairments which prevented her from performing some basic work-related activities: left lateral epicondylitis, left shoulder strain and personality disorder. However, the ALJ also found that Hayes retained residual functional capacity to perform her past relevant work as a…