Workers Compensation

Excerpt

Workplace injuries are a major cause of disability and death. The workers' compensation system was developed to provide compensation to workers for work-related injuries and illnesses. Workers' compensation laws delegate that employers assume most of the costs related to work-related illnesses and injuries, regardless of fault. In the United States, each state mandates its own system for compensation. Federal employees are covered by federal workers' compensation laws. The following are the basic benefits that are included in the compensation systems of all states:

1. Income replacement for temporary total disability

2. Dependent support for employee death

3. Payment for medical, hospital, and death benefits.

Income replacement is usually at a reduced rate as determined by the state, often based on a percentage of the employee's average weekly wage when the worker has a disability or is not accommodated at work with restrictions. The employee may have a waiting period before payments begin. Income benefits can be based upon a percentage of impairment resulting from the injury or illness or a schedule related to a specific loss, such as the loss of a limb.