Worker’s compensation: What is it & how does it work?

Worker’s compensation: What is it & how does it work?

All across the world, employees who have suffered injuries can avail of medical treatment and are even liable to receive a portion of their wages if they suffer a work-related accident or fall ill on the job. This is a direct benefit of the Worker’s Compensation Program.

The Worker’s Compensation Program is a form of state mandated insurance program which ensures that employees are compensated for on-the-job related injuries and illnesses. However, it must be noted that the rules and regulations governing the same vary from state to state.

Most workers or employees can avail of the benefits of this program only if they sustain an injury whilst at work, while performing their requisite role. Under this scheme, the beneficiary may receive a part of their wages (and not the whole) while they receive treatment for the aforementioned injuries or illnesses (once again, dependent on state rules). It must be noted here that each individual state has established its own rate of compensation. For example the state of Arizona may offer a higher rate of compensation for loss of limb as compared to Delaware. California may offer a higher rate of compensation as compared to Oregon when it comes to permanent disability.

A very important thing to remember is that worker’s compensation is a no-fault insurance program i.e. the affected employee never has to prove with the help of a workers comp attorney Idaho that he or she deserves the compensation in order to avail the benefits of the insurance. However, it is important to mention here that an employee who avails this insurance can no longer sue the employer for further damages.

Another interesting addendum is that each state can and does establish its own parameters or scope about acquiring insurance. For example some states have a rule regarding the minimum number of employees that a workplace needs to employ in order to purchase Worker’s Compensation Insurance. In contrast other states have to purchase Worker’s Compensation Insurance no matter the number of employees.

Some states also exclude certain verticals or industries from the insurance type. In some states domestic or agricultural workers may be excluded. In these states, the workers have to resort to tort recourse. In most states, independent contractors are excluded as well.

Some coverage is also meant to compensate certain employees who fall ill due to work conditions. It is important to note that certain states only cover for very specific work related illnesses. However, the aggravation of the illness may not have to be related to one single incident (take for example stress related mental illnesses).

Another feature of the program is that employees do not need to have been at work to contract the illness or sustain the injury to avail the recompense. They can claim the benefits through their workers comp attorney Idaho as long as they were performing any duty at their employer’s request. Point of interest. Commuting to and fro from work usually doesn’t fall under the coverage.