An Overview of Workers' Compensation

Answer 1

Employees who are injured on the job are entitled to specific benefits to compensate for the loss of wages and work hours. This system is called workers' compensation, which outlines procedures for obtaining the benefits and the laws that govern this process. Each state has individual workers' compensation laws that may vary. Additionally, special workers' compensation laws pertain to federal employees and those who work in specific industries. Although the laws may vary from state to state, each business is required to purchase workers' compensation insurance to cover employees who get injured. The process to file a workers' compensation claim is similar to filing a regular insurance claim; the claim is a request for benefits.

The Purpose of Workers' Compensation

Workers' compensation provides a fixed monetary award to employees who are injured on the job or as a result of performing certain job duties. In most cases, this eliminates the need to file a legal claim against an employer. Most laws also provide protection to employers and co-workers by placing limits on the amount an injured employee can recover. Workers' compensation does not seek to determine negligence, but rather to cover an employee for injuries related to his or her job.

Injuries Covered by Workers' Compensation

Eligibility for workers' compensation covers different types of work-related injuries. If job duties accelerate or aggravate a pre-existing condition, an employee may be entitled to workers' compensation. At-work injuries during breaks, lunch hours and company sponsored activities are covered. Exposure to harmful toxins at work which lead to cancer or other life-threatening diseases is also covered. The onset of mental and physical strain from work-related stress or an increase of work duties is considered a work-related injury. Some states include a disabling mental condition that is the result of job demands and constant harassment from a supervisor.

There are several things that an employee must do if he or she has been injured on-the-job. An employee should immediately report the injury in writing to the employer, keeping a copy for personal records. The employer should provide a claim form for the employee to complete. This form is used to notify the workers compensation insurance company that an injury has occurred.

Employer Responsibility for Workers' Compensation

Unless the company has fewer than four employees, purchasing workers' compensation is required in most states. Otherwise, employers are subject to civil liability, fines and criminal prosecution for not having workers' compensation insurance. Employers are also exposed to a lawsuit from the injured employee.

Most states also require employers to post a notice of compliance with the state's workers' compensation laws in a prominent area.