1 Understanding Workers' Compensation
Abbie Bleasdale edited this page 1 week ago


Workers’ compensation (WC) is a government-mandated, employer-paid insurance benefit for employees who incur a work-related injury or illness. WC provides wage replacement for time missed from work and covers medical expenses related to the employee's work-related injury or illness. Vocational rehabilitation benefits, such as training or retraining, may also be available when an employee cannot return to their former job as a result of a work-related injury. When a work-related accident or illness results in the death of an employee, WC may provide compensation to the employee's family and cover funeral expenses.

WC was originally conceived as a replacement for the English common law system, which assigned liability for work-related injuries on a case-by-case basis and offered little or no right to compensation for work-related injuries. Lawsuits could be complex, and employers often faced multiple costly lawsuits arising out of the same sorts of injuries. It was a system that failed both parties. By 1949, WC laws were enacted in all 50 states, the District of Columbia and Puerto Rico.

The current WC system is a trade-off. Liability on the part of the employer is absolute