Employee compensation laws help protect both businesses and employees. Understanding them and the nuances of worker claims in general can help you run a super-successful business. That being said, many employers fail to understand some of the most important facts about workers’ compensation. To help you out, here are eight facts about workers’ compensation that every U.S. employer should know:
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1. These industries have the highest risk of workers’ compensation claims.
Depending on your industry, you may have a higher risk of your employees filing workers’ compensation claims. Preparing to deal with them legally and successfully is your responsibility as an employer. Construction, manufacturing, medical, retail, transportation, warehouse, agricultural, fishing and forestry workers are most at risk. It is absolutely essential for employers in these industries to have a cohesive, specific plan for how to handle any and all employee compensation claims. Besides, workers’ compensation claims by industry can vary widely, so be sure to keep that in mind.
2. The state manages the programs
Employers must pay into government employee benefit funds or collect these funds from insurance benefits that they acquire on their own. When workers become injured or sick due to workplace circumstances, they can use worker insurance claims to find the financial cushion they need to stay financially afloat as their injuries or illnesses require the time they need to recover. treatment.
3. All employers Should Have an employee compensation policy
While all employers must have a compensation policy for their employers, the laws regarding this are a little more complicated than they seem. For example, states differ in who they consider to be insured workers, the types of injuries covered, the type of evidence required for workers’ claims for damages, the statute of limitations, and the remedies employers use to try to deny compensation. employee’s claim for damages.
4. You can self-insure workers’ compensation (in some states)
While not all states allow companies to self-insure workers’ compensation, many do. At the same time, these states require employers to follow strict rules. In some states, workers are allowed to completely exempt independent contractors from claims for damages to their workers. Your knowledge of the workers’ compensation laws in your state of business will help you stay on the right side of the law.
5. Workers’ compensation covers long-term illness and injury.
The main purpose of workers’ compensation benefits is to help workers during their recovery. Eventually, these workers will need help paying for medical treatment, bills, and lost wages. There are several types of benefits for which workers’ compensation is paid specifically. These include health insurance, drug insurance, disability benefits, rehab fees, and psychological counseling. It also includes (in the event of a workplace death) benefits for the death of the employee’s spouse or dependents.
6. Premiums are based on government rates
Not all premiums are the same for workers’ compensation. Both the employer’s past individual experience and the state in which you do business will affect the premiums your business must pay. If your company sees a lot of employees filing workers’ compensation claims, or if you were convinced you were interfering with a workers’ compensation investigation (or filing), your insurance premiums could be much higher than average. To Treat your employees with respect and kindnessyou can lower your insurance premiums.
7. Workers can sue employers for workplace injuries
Even if your employee receives compensation payments, they can still sue you for their injuries or illnesses. Especially if it is found and determined that their injuries were due to the negligence of the company, you may be held legally liable and liable for further damages. By ensuring that your company operates safely and that your employees are treated with respect, you can avoid this tragic and costly scenario.
8. Not all workplace injuries are covered by insurance.
Some types of injuries are not covered by workers’ compensation insurance at all. If an employee was injured due to reckless behavior, if the injury was self-inflicted, if the injury was the result of a crime, or if the employee violated company policy by getting injured, their claim is likely to be dismissed. In addition, employees cannot file a claim for damages for an injury sustained at home.
Protect your company and Your employees
By keeping yourself up to date with all the facts and laws about workers’ compensation, you can be sure that you are protecting both your company and its employees. If you fail to stay on the right side of the law, it can end up costing you a lot of time.
