Chapter 21 Workers’ Compensation

1. Employment Law: New Challenges in the Business Environment Chapter 21 Workers’ Compensation

2. Appreciate the purpose of Workers’ Compensation. Know the function of the Workers’ Compensation Board. Learn that eligibility hinges upon the injury occurring within the scope of employment. Be aware that an employee must notify the employer of the injury sustained. Be apprised that employees may not sue their employer in court. Chapter Checklist

3. Be cognizant that employers will pay for medical expenses, lost wages, retraining and death benefits. Realize the Workers’ Compensation is governed by each state. Recognize that some employees submit fraudulent claims hoping to collect benefits. Understand that Workers’ Compensation is absolute regardless of fault. Appreciate that Worker’s Compensation is a form of no-fault insurance. Chapter Checklist

4. Workers’ Compensation Employers negligence is absolute when the injury occurred on the job Employers are immune from lawsuits for unintentional torts Injury: includes diseases that occur in the workplace, Ex: lung disease from asbestos Workers Comp. saves time and expense of defending a lawsuit

5. Reporting a Claim Employees must report injury to: His/her boss File a claim with the Workers Compensation board Workers Comp. Board: Provide injured workers with support and medical treatment quickly and to provide incentive to employers to have a safe working environment for their employees

6. Workers Compensation Board Employers must carry workers’ compensation insurance All employees are generally covered by their employer’s workers compensation insurance. Exceptions: Small businesses, officers, owners, independent contractors and domestic help

7. Covered Conditions Physical injuries: falling, noise, toxic chemicals, machinery, vehicles and repetitive motions are covered Mental & Psychological conditions: Traumatic stress disorder

8. False Representations A worker who lies about his/her physical or mental health will be prevented from recouping compensation if the following are true: The representation was made intentionally Reliance was justifiably placed on the lie The lie influenced the employer in hiring of the employee The resulting injury is of the same condition as the one falsely represented

9. Employer Defenses Industrial Revolution circumstances paved way for the recent laws about Workers Comp. Employees were responsible for their own injuries They could only sue coworkers to get money because laws were in favor of the employer Injuries were considered workers negligence

10. Temporary Injuries Are on a schedule of benefits that determines the amount of compensation given to the employee Once the time limit has been reached payments end Employees do not have to lay out their own money

11. No-Fault Insurance Workers’ compensation is a type of No-fault insurance Medical expenses for on-the-job injuries resulting in permanent injury or death are fully covered Disability payments for loss of earnings will be payable for life at a fixed rate If employee dies the benefits will be paid to surviving spouse and to any children under 18

12. Human Resource Advice Understand that workers’ compensation applies only to work-related injuries. Learn that employees must give notice that a work-related injury was sustained. Know that employers are immune from lawsuits for employee work-related injuries. Be aware that, as an employer, you are absolutely liable for all injuries to employees occurring within the scope of employment. Be cognizant that workers’ compensation is governed by a state board.

13. Human Resource Advice (Cont.) Realize that employees may fraudulently claim that their injuries occurred on the job. Appreciate that you can contest an employee’s claim if it is fraudulent. Be apprised that employees may collect workers’ compensation even if they were negligent. Recognize that employers pay into the state-funded workers’ compensation program. Attempt to minimize work-related injuries to avoid having to pay workers’ compensation.

14. Summary Workers compensation was the first employment law promulgated in the United States. Workers compensation is the only employment law governed exclusively by the states. Employers are absolutely liable for injuries or deaths that occur within the scope of employment.