Workers' Compensation Coverage
The workers' compensation system guaranties a worker recovery for an injury that occurred on the job and also protects the employer from being sued in court for the injury. In essence, the employee trades the right to litigate the fault of a workplace injury for a reliable award. This benefits the employer because unpredictable litigation could result in numerous and more costly awards. Workers' compensation can be viewed as no-fault. In other words, there is never a need to prove exactly what happened; regardless of who was at fault, the worker receives compensation.
Depending on the state, to ensure adequate workers' compensation coverage the employer is required to purchase workers' compensation insurance, pay into a state insurance fund or self-insure.
Most workers' compensation laws are state based. The particular state where the accident occurred may be more or less generous for an employee. If you are faced with workers' compensation issues as an employer, you should consult an attorney. A workers' compensation lawyer at our firm is an excellent resource for the information you need to meet your obligations and protect your rights.
Employers Covered
Some employers are not subject to either state or federal workers' compensation laws. The main exception is small employers that employ only a few workers. The actual minimum number of employees needed to fall under the workers' compensation system varies from state to state and is usually five employees or fewer. Whether an employer is subject to the workers' compensation system sometimes depends on the industry.
Employer Breach of Duty to Provide Workers' Compensation Coverage
Employers subject to the workers' compensation laws that do not provide required workers' compensation insurance or other coverage could face fines, criminal prosecution and waiver of immunity from civil suits.
Employees Not Generally Covered
- Maritime, energy, railroad and some mining workers; federal employees (covered by separate federal laws)
- Domestic workers
- Volunteers
- Farm workers
- Independent contractors
- Some state and local government employees
Even these categories can vary by state.
Filing a Claim
When an employee is injured, the employer must be notified as soon as possible and within the time required by law. In some states, workers' compensation claims must be filed with the state workers' compensation agency. In others, the claim can be made with the employer directly. Care must be taken to meet all legal deadlines. The claim will be submitted to the company's insurance carrier or other appropriate fund or claim manager.
Benefits
A certain amount of the injured employee's salary will be made up by workers' compensation and medical costs are covered. Vocational rehabilitation services such as retraining, interview coaching and resume writing are often another component of benefits. Death benefits provide monetary support payments to deceased workers' beneficiaries and dependants and cover funeral expenses.
Conclusion
Workers' compensation obligations and procedures can be complex. If you are an employer, the counsel of a knowledgeable workers' compensation attorney at our firm can be invaluable.
Copyright ©2009 FindLaw, a Thomson Business
DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.
