It is important that employers and employees understand what workers compensation law is and how it impacts them. This is important because it ensures that all parties are aware of their legal rights and what protection they are given by the law.
What Is Workers Compensation Law?
Workers compensation law is a series of legal rules and regulations which are applicable in all states. This system of rules was created to pay for the expenses of workers who have been injured during job-related tasks. It is possible for an employee to claim medical expenses, lost wages, disability payments and the costs of rehabilitation or retraining through this system.
The compensation system is administered by the state and financed by employers. There is a mandatory employer contribution which is made that will cover the costs of any claims. Employees of the federal government also have access to a system which is similar to this.
The Introduction Of Workers Compensation Law
Workers compensation law is used as a replacement for the traditional personal injury litigation of the past. This was done to remove the risks faced by both the employers and the employee. Without the worker’s compensation system, an employee who was injured or became ill due to work related tasks had to file a lawsuit and prove that the employer was responsible for the injury or illness. This often resulted in delays and the possibility that the employee loses the case and receives nothing in compensation.
For employers, the introduction of this system eliminated the possibility of lawsuits which could result in large rewards for damages. With this system, even if the employee was seriously hurt or killed, the employer will only continue to pay their contribution as set by law. Of course, these rates will generally increase if there have been any incidents linked to the company. From the employer’s perspective, this system is a form of insurance which is mandatory.
The Cost To The Employer And Employee
While there are many benefits to this system, there are some costs that need to be taken into account. Employees can no longer sue their employers for negligence. They will also receive less in terms of compensation than they would have with a lawsuit.
For employers, the main problem is that they have to pay the premiums charged by the state. This premium must be paid whether or not there are any claims made by an employee of the company.