Who Receives Workers’ Compensation

Workers’ compensation refers to a type of insurance benefit given directly by companies to their workers. This insurance provides monetary benefits and health care costs to workers who are injured or develop an illness due due to their job. The workers benefit through the insurance and the employers benefit because they are guaranteed that the injured and ill workers cannot sue them.

History

Prior to the twentieth century, workers who were injured on the job had to sue their employers in order to reap any compensation for their injury. Under this system, the injured workers had to prove negligence on the employer’s behalf, something that was difficult to do in court. This frequently resulted in a costly legal battle for both sides that made it impossible for the employee to reap any benefits.

With the beginning of the twentieth century, workers’ compensation insurance laws were passed as part of overall employment reforms. Thanks to the reforms, this new type of insurance was regulated by each state and became mandatory in every state.

Accidents

Since the compensation laws are regulated by states, the specific qualifications and exemptions can vary by state. While all states cover various types of injuries and illness their employees suffer on the job, some states specify that the injury or illness must arise due to the nature of the work itself and must result from an accident that the employee could not have prevented. States with these types of laws may specify that any injury caused at work that was not caused through an accident must be covered by general health care coverage.

Diseases

While injuries are the most commonly discussed aspect of coverage, worker’s compensation also covers diseases which result from performing the job. Diseases such as cancer, caused by exposure to asbestos or certain chemicals, do not usually require exposure to the be the result of an accident, the way that injuries do.

Exemptions

A common requirement found in most state laws is that the employee cannot be a contractor or freelance worker. Companies which are partnerships or sole-proprietorships also fall outside of the realm of compulsory workers’ comp coverage. However, both full and part-time workers are covered under compensation laws.

Federal Coverage

Although workers’ compensation is regulated by state law, The Federal Employment Compensation Act provides coverage for any federal employee who is not part of the military. Federal compensation is overseen by The Department of Labor’s Office of Workers’ Compensation Programs. Specific eligibility requires vary, depending upon the specific employment held by the federal worker.

Penalties

Regardless of the differences in state law, employees are required to cover medical costs and lost salary caused by the injury or illness. Failure to comply with workers’ compensation laws can result in stiff fines in addition to the financial burden of being sued by the injured or ill worker.

Peter Wendt is a writer and researcher specializing in Burlington workers’ comp lawyer. For readers who are interested in learning more about this subject, Peter recommends they check out IowaWorkersCompensationLaw.com.