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State Workers’ Compensation Law
State workers’ compensation laws were designed to protect injured or disabled workers due to job related injuries that provide rehabilitation services, medical care, and fixed monetary benefits without the potential prolonged litigation.
The law also provides for the dependents of the workers that may have been killed in a work related accident or died from an illness.
There are some laws that protect employers and the co-workers by placing limitations on what the injured worker can recover from the employer and eliminates the liabilities of the co-workers.
The state workers’ compensation law system was created originally to avoid legal proceedings. When the employees agree to give up the rights to sue the employer in court, they are able to collect on the state workers’ compensation benefits.
Prior to the workers’ compensation laws, employees could sue the employer in court but had to prove the employer directly caused the accident.
Employees can still sue in court if the injury was caused by someone such as a visitor or an outside contractor as well as injuries caused by a defective product that includes flawed construction equipment.
Federal and State statutes make up the majority of the laws for workers’ compensation with the laws to regulate the governed operations of the state agencies administering the workers’ compensation programs.
The Federal Employment Compensation Act (FECA) administers federal statutes for non-military employees. The Federal Employment Liability Act (FELA) covers the incidents regarding railroads that are engaged in interstate commerce are liable for the injuries of the employees if they have been negligent.
The Merchant Marine Act (The Jones Act) provides coverage for seaman with the same protection as FELA. The Longshore and Harbor Workers’ Compensation Act covers specific employees of private maritime businesses.
The Black Lung Benefits Ace covers miner suffering from “black lung” with the mine operators paying for the benefits in an established fund.
Most states have individual state programs for the employers. The states have statutes to limit the liability of the employer and co-workers of the injured employee. Some states use a state fund that reduces the state's workers’ compensation rates for the employer while other states use private insurance companies.
The negatives to employers are the constant issue of work related employee injuries and the lack of fault of either party. Employee accidents will always raise the employer’s workers’ compensation premiums in each situation.
Employers do not have to be at fault for any of the workers’ comp claims filed, yet will be penalized for the accidents when the annual premium is reviewed and calculated resulting in a raise in cost for the coverage.
To resolve the issues of employee work related accidents involving State Worker’s Compensation claims, employers can take preventive actions.
One step is to implement preventive programs by providing safety equipment to all employees for the various job duties that could cause personal harm at work. The equipment includes protective eyewear, back braces, and gloves.
As an employer you should have safety policies and procedures in place to educate all employees on the company’s safety requirements and policies.
The education will help reduce the work related injuries and accidents leading increased State Worker’s Compensation claims and premiums.
To learn more about state workers' compensation laws visit your state's website.
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Be sure to check out - Workers' Comp Insurance Company Mistakes that Can Cost Your Business Thousands