Workers Comp Laws
Workers are secured against a loss of the ability to work. Workers' Compensation prevents the financial hardship a worker would experience without earned income. State and federal programs replace the worker's lost income in exchange for the worker's loss of the right to sue the employer. The first state program began in 1911. Today, all states have a Workers' Compensation program that compensates workers for the lost ability.
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Insurance
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Workers' Compensation programs insure workers for injury or occupational illness that occurs during work. Even if the employer caused the injury, benefits are available. Fault is not considered. Free from fault, the employers benefit by avoiding tort suits. Once a worker agrees to workers compensation, the compensation is the only payment a worker can receive.
Disability
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Loss of ability to work is the reason a worker is compensated. A worker cannot perform the same work and body functioning is impaired. The inability to work results in a loss of earned income. Disability insurance can cover a few days of minor injury, or a lifelong condition that keeps the worker out of work.
The laws cover disabilities caused by an injury or an occupational illness, including a condition that is developed from repeated stress. How long the disability lasts and how severe the injury are the most important considerations. Conditions that need medical attention are covered, even conditions that do not affect work ability.
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Benefits
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Workers can receive three benefits: medical care, permanent and temporary. Medical benefits are the most common. According to the National Academy of Social Insurance, the payments for doctor visits, care and treatment are the only benefit in about three quarters of the cases. When the condition prevents work, compensation for lost work is paid weekly or bi-weekly in an amount that can not exceed a maximum. For temporary benefits, two thirds prior earnings is the typical maximum. California's limit is the state's average weekly wage.
For specific injuries, a workers compensation agency uses a schedule of injuries and amounts to determine weekly payments. If a condition is not in the schedule, the amount is determined by using the degree of body impairment, lost earning capacity or lost earnings.
Workers not able to work in any position can be paid amounts for rehabilitation and training.
Funds
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In most States, private employers are required to pay for the workers' compensation insurance. An employer can choose to insure their workers if they can prove they have the finances. Twenty one states rely on private insurance and state insurance. Twenty six states have these state funds; however, the state fund is the only source of funding in Ohio, North Dakota, Washington, West Virginia and Wyoming.
Federal Law
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State law does not insure all workers. Federal programs provide workers compensation for longshoreman and harbor workers, miners with black lung disease and federal civilian employees. If a worker receives Social Security disability insurance and federal or state workers' compensation, there is a limit for total benefits.
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