Workers’ compensation is mandatory in the United States, except Texas that opts for an alternative benefit plan. Also called workers’ comp or workman’s comp, workers’ compensation serves as insurance that protects both the business and its employees from potential financial loss brought by work-related injury or illness. Here are some things you should know about workers’ compensation:
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It Protects Businesses from Devastating Financial Downfall
Workers’ comp protects the employees, covering damages of lost wages, medical bills, short- or long-term disability, and, in worst cases, death. Except for Texas, employers are required to provide workers’ comp depending on their state’s requirements.
While this sounds like another financial responsibility for the business, it’s all about protecting it from their employees’ potential litigation when work-related injuries or illnesses arise. When funded directly, major claims can be all it takes for uninsured businesses to crumble under financial pressure.
Businesses Face a Lot of Hassles without Workers’ Comp Insurance
When filed with workers’ comp claims, an uninsured company will have to pay the employees directly. Failure to do so, such as when the claim is huge, can be considered a criminal misdemeanor by law. The cost of fines varies by state.
When the employee files a civil lawsuit, the business is typically assumed negligent and is most likely to lose in defense of contributory negligence. With this, the company will have to pay another significant sum for the recovery of damages.
These hefty amounts and hassling processes usually lead the employer to negotiate with the ill or injured employee, government agencies, and service providers. There might be no need for employers to undergo all these when they make sure to avail workers’ comp first.
Requirements Vary per State
Most states will require their businesses to have workers’ comp even when they only have one employee. However, some will only need it when they meet the minimum number of employees, including the corporate executives. For example, New Mexico’s minimum requirement is three while Alabama requires five.
It Might Not Protect All Employees
Workers’ comp might not include all kinds of workers, with most states excluding independent workers, casual employees, and domestic workers by law. Some states also exempt real estate agents or taxi drivers. About three-quarters of the states exempt farmers.
Compensation Regardless of Whose Fault
Insurance will still be provided despite who is at fault if employees are injured or ill due to their work and report the incident on time. Generally, it covers dangers such as repetitive motion injuries or many other kinds, loss of limbs, emphysema, or other illnesses contracted from the work environment.
The most common kinds of injuries include the following:
- Twisted ankles or other musculoskeletal injuries
- Machinery accidents from equipment failure
- Falls or slips
- Strains or sprains from lifting
- Other injuries from corporate travels.
Regardless of the fault, employees should make it a point to report the incident immediately to their employers.
Injuries Not Covered by Workers’ Comp
After immediate investigations and the investigatory committee determines the cause of the injury, employees have to note that their workers’ comp plan doesn’t cover damages. These might include intentional damages inflicted to self, from being intoxicated in the workplace, from getting into a fight that the employee started, idiopathic falls, and emotional injuries associated with physical traumas.
Retaliation from Employers Is Illegal
Employees can sue employers if the latter retaliates in any form when the former claim their workers’ comp. Retaliation can come from a change in responsibilities, pay cuts, or demotions. Employees should be aware of what constitutes retaliation according to their state’s laws.
This protects employees’ rights so they don’t have to feel afraid to report when they’re injured on their jobs. This is just fair for both sides since employees’ rights to sue their employers are waived in exchange for their benefits. Remember that employees’ rights to sue remain, especially when the negligent third party or employer continues to deny the former their claims.
Witnesses and Lawyers Are a Great Help
When employees have witnesses on their side—coworkers, supervisors, or other people—during the accident, the better their chances of getting just compensation from their employers. The testimonies of the witnesses can significantly strengthen the case.
However, witnesses might not be enough. You’ll need someone to represent you in court. As such, employees should work with their respective personal injury lawyers so that they don’t get overwhelmed with the process or don’t receive the correct compensation. It’s easier to collect a fair settlement with the help of experts.
Both sides will have to work with an attorney for seamless communication between the two parties. Lawyers will represent both for the best outcome.
Workplace injuries can test you, not only physically but financially as well. However, as an employee, you must know your rights to receive what’s due to you. As an employer, you are within your power to formally start an investigation, especially when there’s negligence on your employees’ part. Make sure to keep yourself informed on your local laws and get legal representation as soon as you can.
