Workers compensation laws are set up to protect workers. They pay for medical costs, lost wages and rehabilitation costs. If a worker is injured on the job, he or she can file a workers’ compensation claim. In some states, injured workers can also sue for damages when the injuries were intentionally inflicted. The law also allows employees to recover compensation for their dependents if a worker dies in a work-related accident.
There are many types of businesses that are required to have workers’ compensation coverage. These are employers with at least one employee, casual employers with four or fewer employees, agricultural businesses, and construction companies.
Some state laws cover contractors, temporary workers, and even volunteers. However, these employees may not qualify for workers’ comp coverage unless they elect to be covered. Also, in some states, temporary workers are considered to be employees of a special employer. For example, a lending agency is considered an employer under some states’ workers’ compensation laws. This is because these workers are often treated as a dual entity, both an employee of the lending agency and a special employer.
Workers’ compensation covers injured employees for the full length of their employment. It does not cover employees who were injured while on vacation or outside of the workplace. Nevertheless, the law can be helpful in covering treatment costs. It can also help to cover the cost of funeral expenses. Additionally, it can help to replace lost wages.
Workers’ compensation can also be a useful tool in cases where an employee suffers a long-term disability. It can also help to cover ongoing care and prescriptions. Whether an employee is disabled for an extended period or simply has to undergo surgeries, workers’ compensation can be important in helping to ease the financial burden of recovery.
In addition, workers’ compensation helps to eliminate the need for litigation. A lawsuit can be costly and a time-consuming process. By contrast, workers’ compensation provides a fixed monetary award. That means that the employee will not have to worry about losing a fortune if he or she is unable to return to work.
Employers with more than two regular employees are required to carry workers’ compensation insurance. However, this requirement is not imposed on sole proprietors. Instead, a sole proprietor can opt out of the law.
In some states, workers’ compensation law is enforced by a government board that specializes in these kinds of cases. For example, in New York, the Workers’ Compensation Board handles claims. In other states, the courts look at the relationship between an employee and an employer. Other factors include the amount of control an employer has over the worker’s work and whether the employee is an independent contractor for the purpose of workers’ compensation.
Agricultural workers and farm and ranch labor are excluded from compulsory coverage. But there are exceptions. Examples of these include independent contractors on farms, and owners-operators of large tractor-trailer vehicles.
As with most workers’ compensation laws, a variety of exemptions are also available. Certain relatives, such as parents and siblings, are exempt from coverage. Agricultural office workers and some commission-paid real estate salespeople are excluded. Employees of churches and domestic service employers are also exempt. Finally, some employers who are federally insured are excluded from coverage.
