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1992-04-30
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@058 (Max # of lines is 61) CHAP 11
┌───────────────────────────────────────────────┐
│ WORKERS' COMPENSATION INSURANCE │
└───────────────────────────────────────────────┘
One of the "hidden" costs of having employees is the necessity, at
least in most states where you may do business, to have Workers'
Compensation Insurance coverage, a cost that usually cannot, by law,
be charged to the employees by the employer. One of the advantages
of Workers' Compensation coverage to you as an employer, however, is
that if a worker is injured or becomes ill as a result of a job-
related injury or illness, he or she usually cannot sue you for dam-
ages, but must instead file for Workers' Compensation benefits, as set
by law, which are paid by your W.C. insurance carrier. A disadvantage
of this system is that Workers' Comp coverage is often quite expensive,
particularly if you have workers engaged in relatively hazardous activ-
ities.
Workers' Comp insurance provides 4 types of major benefits to injured
workers (in most states):
. Medical benefits, for medical and surgical expenses
to treat the injury.
. Death benefits, usually including burial costs and payments
to the surviving spouse and/or children.
. Temporary disability benefits, which usually begin after only
a few days off the job (replacing some percentage of pay, in
the usual case).
. Permanent total disability benefits, usually a lump sum awarded
by a state commission.
Workers' Comp is a "no-fault" system. That is, the employee does not
have to show that the employer was negligent in any way. All the
injured employee must show is (a) that there was an injury and (b) that
it occurred in the course of employment. This also means, generally,
that the injured worker gets Workers' Comp benefits as an exclusive
remedy, and can't sue the employer or co-workers for negligence, ex-
cept in certain rather extreme situations.
@CODE: TX
Texas is one of the very few states that does not require an employer
to obtain Workers' Compensation Insurance. However, an employer runs
a considerable risk by not having such insurance.
@CODE:EN
@CODE: DC
In Washington, D.C., virtually all employers are required to provide
Workers' Compensation insurance coverage for employees.
@CODE:EN
@CODE: AR FL GA VA NC NM SC RI MO MS
While Workers' Compensation Insurance is generally mandatory (in most
states) for small employers, @STATE requires such coverage
@CODE:OF
@CODE: AR FL GA NC VA
only for employers with 3 or more employees.
@CODE:OF
@CODE: NM
only for employers with 3 or more employees. However, as of 1-1-92, no
such exemption is allowed for businesses subject to the Construction
Industries Licensing Act. Note that in New Mexico, every employer
subject to the Workers' Compensation Act who has an annual workers
compensation insurance of $5000 or more (or who self-insures) is
subject to an annual safety inspection.
@CODE:OF
@CODE: SC RI
only for those employers with more than 3 employees.
@CODE:OF
@CODE: MO MS
only if an employer has 5 or more employees, in general.
@CODE:OF
@CODE: WY
In Wyoming, Workers' Comp. insurance is required for all "extra-
hazardous" employment (which is very broadly defined).
@CODE:EN
In @STATE, Workers' Compensation insurance is mandatory for
most employers, in general.
@CODE: CA
@CODE:NF
For 1990 and subsequent years, 1989 amendments to the @STATE
worker compensation laws place the burden of proof for psychological
disability on the employee, and also require reporting of all work-
related injuries.
As an employer in California, you are required by state law to do the
following:
. Notify new employees in writing, of their right to Workers'
Compensation in case they incur a job-related injury or illness.
. Notify injured employees of their benefits. After January 1,
1990, employers are required to give employees a claim form
(form DWC-1) within 24 hours of an injury.
. Post a notice to employees that gives the insurance carrier's
name and that advises employees of their rights to compensation
if injured on the job and to select their own physician.
. Effective January 1, 1990, the California Workers'
Compensation Act of 1989 made several major changes in the
California Workers' Compensation laws:
. Raised both minimum and maximum benefits;
. Created a commission of "qualified medical
evaluators";
. Placed the burden of proof for psychological
disability on the employee;
. Now requires employers to give employees a claim
form (form DWC-1) within 24 hours of an injury;
and
. Requires reporting of all work-related injuries.