What is the Purpose of Workers Compensation?
What is the Purpose of Workers Compensation?
The purpose of workers compensation is to protect both workers and employers. Workers compensation was established during the Industrial Revolution in the early 20th century. Before the implementation of workers compensation, the only recourse injured employees had was to hire a lawyer and sue their employers for negligence. This resulted in numerous expensive injury claims.
Workers compensation became the no-fault solution to providing injured workers with benefits for on-the-job injuries. The system removed the requirement for proving fault and enabled workers and employers to resolve issues out of court.
Workers compensation laws have two main purposes
Protecting the worker. Workers compensation protects workers because it guarantees that job related injuries and illnesses are covered by insurance. Benefits are given to the injured worker at no cost and in exchange, the worker gives up the right to sue the employer. Possible workers compensation benefits include:
- Full medical
- Surgery
- Hospital treatments
- Wage replacement
- Permanent disability (if applicable)
Protecting the employer. Most employers are mandated by law to carry workers compensation insurance and by doing so, employers are protected against lawsuits from injured workers.
Workers compensation is essentially a compromise between employers and workers. Employees receive specified benefits for on the job injuries or illnesses, and employers are protected against workers seeking legal remedies.
Employers who are exempt from carrying workers compensation insurance (usually government entities) are required to provide unlimited sick leave with full pay. Civilian federal government employees are covered by a program administered by the U.S. Department of Labor. Members of the military are covered by veteran's health and related benefits.
The workers compensation no-fault system has in effect achieved its purpose by eliminating prevalent litigation of employers for negligence related to worker injuries and illnesses. Today, most injured workers’ lawsuits involve determining if the injury occurred on the job and any entitled benefits.
Workers compensation legal advice
If you have been injured on your job, a Massachusetts workers compensation attorney in your area can provide legal advice about your workers compensation options.
Robert L. Noa, Attorney at Law
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