Workers Compensation

Workers Compensation is an insurance program designed to protect employers from liability and employees from medical and financial duress due to workplace injuries. Essentially, the employer pays a premium with rates determined by the job classification of each employee and the claims history. The rate is multiplied by the respective payroll. In exchange for medical and financial assistance, the employee mandatorily relinquishes the right to sue his or her employer for negligence.

A good boss is supportive when an employee becomes injured and should act as a liaison with the workers comp administrator, but be cautious about what you say or commit to as it can create a liability to the company. Workers compensation is administered state-by-state.

  1. Overview of Workers Compensation (Wikipedia).
  2. An overview of workers compensations laws (Cornell University Law).
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