WORKERS' COMPENSATION

Workers' compensation is a form of insurance that provides medical coverage and/or income replacement for employees who sustain injuries or suffer other disabilities because of workplace conditions or accidents. The cost for workers' compensation is the responsibility of the employer and is regulated by the state and/or country in question. The major purpose of workers' compensation is to assist injured workers and their dependents. Certain workers' compensation laws limit the amount an injured employee can receive in benefits.

Historically, the earliest workers' compensation law was passed in Germany in 1884, with Great Britain following in 1897, and the United States in 1908. Most industrialized countries provide compulsory workers' compensation. In the United States, all fifty states have passed workers' compensation laws and are further regulated in certain aspects from the federal government. The benefits provided are dictated by law.

Workers' compensation was initially intended to provide protection from hazardous types of industrial work. In the early twenty-first century most places of employment that have large numbers of employees, such as schools and factories, also provide workers' compensation benefits. Some situations in agriculture-related employment, as well as small businesses, do not provide workers' compensation.

Although workers' compensation was originally designed as protection from accidental injuries, as time passed, additional types of job-related conditions were added. For example, if a worker acquired a disease as a direct result of the job, the worker would be covered by workers' compensation. Workers' compensation laws today generally cover accidents occurring while working on the job.

State workers' compensation laws provide the framework when the job is a state-related position. At the federal level, the Federal Employment Compensation Act (FECA) provides workers' compensation for nonmilitary and federal employees. The FECA also, in most cases, provides compensation for accidents or other disabilities sustained while employees are performing their duties, as long as the accidents are not willful or caused by intoxication. Medical expenses for disability are also covered. Occasionally, employees may be retrained for another type of job. Disabled employees receive a portion of their monthly salary while they are disabled and may receive more if the injury is permanent or if there are additional dependents. The act also provides compensation to survivors of employees. The FECA is administered by the Office of Workers' Compensation Programs.

Several areas related to workers' compensation are covered by a variety of laws. The Federal Employment Liability Act provides for injuries incurred by interstate railroad employees if the interstate railroad has been negligent. Another is the Merchant Marine Act (also known as the Jones Act), which provides protection against injury for those working in positions on the seas. Certain specified employees who work for private maritime employers are covered against injury by the Longshore and Harbor Workers' Compensation Act. Miners are protected by the Black Lung Benefits Act for this disease, which is supervised by the secretary of the U.S. Department of Labor.

While most injuries are legitimate, it is important to note that workers' compensation claims are scrutinized carefully before awarding benefits. Detailed documentation is an essential requirement before making a judgment in settling a workers' compensation claim.

BIBLIOGRAPHY

Hood, Jack B., Hardy, Benjamin A., Jr., and Lewis, Harold S., Jr. (2005). Workers' compensation and employee protection laws in a nutshell (4th ed.). St. Paul, MN: Thomson/West.

McCoy, Doug (2002). Workers' compensation: The survival guide for business. Newark, NJ: LexisNexis.

Popow, Donna J. (2004). Principles of workers' compensation claims (3rd ed.). Malvern, PA: American Institute for Chartered Property Casualty Underwriters/Insurance Institute of America.

Priz, Edward J. (2005). Ultimate guide to workers' compensation insurance. Irvine, CA: Entrepreneur Press.

Workers' compensation: An overview. Retrieved December 13, 2005, from http://www.law.cornell.edu/wex/index.php/Workers_compensation