Workers’ compensation is a program dedicated to providing cash benefits and medical care to employees injured during their job. It is a form of insurance paid by the employer; the employee will not contribute to the cost of compensation in case an accident occurs.
Injured employees significantly benefit from this program as it relieves the financial and mental burden of injury. However, you’ll still have to prove the disability or injury is work-related. It’d be wise to get legal help from experienced lawyers when filing your claim to the Workers’ compensation board. Here is more on workers’ comp and its benefits.
What’s Workers’ Compensation?
Workers’ comp is government-mandated and provides several benefits for employees injured in their line of work. It resembles a disability insurance program offering cash and healthcare benefits to ill or injured workers. Each state’s benefit requirements vary in the US except for Texas, where employers don’t need to maintain workers’ comp insurance.
The benefits include partial wage payment for the hours you couldn’t work because of the conditions. The program also settles the bills if there are additional healthcare services and occupational therapy. Your employer pays premiums to private insurers, who then handle all your workers’ compensation claims.
It’d help to consult with your state’s Workers’ Compensation Board if you have any queries. For federal employees, there is a dedicated federal workers’ comp program. The Black Lung Program is another insurance focused on death and disability benefits for coal miners and their dependents.
How Do Injured Employees Benefit?
It is important to understand workers’ compensation policies vary between states. In some, employers aren’t required to have it, while others exempt small businesses. You could possibly reach out to government relations firms. Here is how an injured employee can benefit from workers’ comp:
Salary Replacement
In case you get an accident at work and get injured, your employer should cover your medical requirements and still pay a replacement salary. Note that the replacement cannot exceed your full salary; the highest amount received is around two-thirds of your gross salary.
Another upside to salary replacement is the benefits received are not taxable at the state or federal level. However, you may have to pay some taxes if you also receive income from Supplemental Security Income or Social Security Disability programs.
Healthcare Expenses Reimbursement
Workers’ compensation also covers all healthcare costs for work-associated injuries. Note that the plans offered are specific to injuries directly involving their area and scope of employment. For example, a construction worker can only claim compensation for injuries suffered in a fall, but not for accident injuries on their way to work.
You can also receive compensation equivalent to sick pay when on leave. If the employee dies, it’s their dependents who’ll get compensated.
Who’s Covered by Workers’ Comp?
There are various factors when deciding which employees to cover in your workers’ compensation policy. It depends on their specific roles, the hazards exposed to, and the size of your organization. For most states, all full-time employees must have coverage. The following professions don’t need coverage in most states;
- Insurance agents
- Casual laborers
- Real estate agents
- Farmhands
- Business owners
To better understand who your workers’ comp program should cover, it’s crucial to internalize your state’s requirements. Jurisdictions like Florida, Alabama, North Carolina, and Virginia have a minimum number of employees to determine your business’ need for workers’ comp.
Apart from Texas, all states require employers to offer workers’ comp coverage to their employees. Note these rules vary between states, meaning dozens of exemptions and exceptions depending on your business location. Leverage the resources available online to determine if you’re covered or not. If you ever get into an accident at work, contact your lawyer first for a seamless and worthwhile experience.
We are not lawyers and this is in no way intended to be used as legal advice . We cannot be held responsible for your results. Always do your own research and seek professional legal help.
Meg is an author at Cinnamon Hollow. She writes on a variety of topics sharing tips and ideas for daily life.