What is workers compensation?
Workers’ compensation is a system created by state law. Most employers are required to participate in the system. Employers contribute money to a fund that then provides benefits to workers who are injured on the job. In theory, this system for workplace injuries works to the benefit of employees and employers. Employees benefit because they do not have to prove that their employer was at fault in order to be compensated for their injury. The employer benefits because the employee gives up the right to sue the employer. The employer’s liability insurance goes down and they have more certainty about future expenses. Both parties get to avoid the time, hassle and uncertainty associated with a lawsuit. Each state has its own set of workers’ compensation statutes but most systems operate in a similar fashion. When an injury occurs, the employee notifies his or her employer and fills out a claim sheet.
Under the workers’ compensation law, if an employee sustains an occupational injury, workers’ compensation laws may provide the employee with medical treatment and vocational rehabilitation; compensate the employee for job-related temporary and permanent disability; and protect the employee from retaliation for exercising workers’ compensation rights.
