Workmen's Compensation Act
The Workmen's Compensation Act refers to an act or statute passed by each state that establishes the state worker's compensation program. Worker's Compensation legislation is designed to protect workers from injury or harm that occurs on the job. Each state in the U.S. makes its own worker's compensation laws. While this results in some variation between states, the underlying concept and fundamental rules are relatively consistent throughout the U.S.
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What is the Worker's Compensation Act
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The Worker's Compensation Act establishes the system of worker's compensation in the state passing the statute. It is an exclusive remedy system, which means that collecting workers compensation is the only remedy available to injured workers. An employee cannot sue his employer for personal injury, unless the employer intentionally and willfully injured the employee, or the employer was uninsured. An employer need not be negligent to be responsible for paying claims for work-related injuries.
Who is Covered by The Workermen's Compensation Act
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Exact coverage rules vary by state. In most cases, all employees are covered. Agricultural workers, and in many cases, domestic staff, such as cleaning people and gardeners who work in private residences are exempt from coverage. Most states require employers to purchase worker's compensation insurance to cover every employee even if they have only one employee. Some states do not require insurance until there are five or more employees. Large employers may be able to "self insure," or provide benefits to the worker's themselves if they prove they have sufficient assets to pay out potential claims.
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What is Covered by the Workmen's Compensation Act
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Almost every state uses the same terminology and covers the same general type of injures. Most workmen's compensation statutes use the phrase "injuries arising out of and in the course of employment." This means that if an injury occurs because of the job or job duties, it is covered under workmen's compensation. The injury must occur in the course of employment.
Questions often arise as to whether an injury arose out of or in the course of employment. For example, some states will allow you to recover for injuries you suffered while commuting to work. Others do not provide benefits unless you were injured on the employer's premises.
Types of Covered Injuries
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The majority of workmen's compensation acts have a broad definition of injury. This could include accidental injury that results in damage to the body from a sudden occurrence, such as losing a limb in a piece of machinery or falling off a ladder. It also includes repetitive stress if the job is known to cause such injuries and/or if it can be shown that the injury resulted from the job. Injury can include illnesses caused by exposure to chemicals or toxins at the workplace.
Benefits
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The Workmen's Compensation Act also establishes the types of benefits available to injured workers. Benefits include disability payments, death benefits, disfigurement payments and medical costs. Specific rules for recovering benefits vary by state. In many cases, temporary or permanent disability benefits are paid according to a disability rating or disability index. Some workmen's compensation statutes list schedules of benefits. For example, payments will be paid for a certain number of weeks if you lose a thumb, while they will be paid for a longer period if you lose a whole hand. Death benefits may include lost wages and burial expenses. Medical costs usually include any medical costs reasonably necessary to treat the injury. Benefits are usually capped at a state maximum, which also varies by state.
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