How Workers Compensation works. Explained.

HR basics is a series of short courses designed to highlight what you need to know about a particular human resource management topic in today's HR basics we introduce workers compensation discussing covered persons covered injuries and benefits provided. 

How Workers Compensation works, Explained.

workers compensation is a type of insurance that provides defined wage benefits and medical care to employees who are injured on the job. workers compensation is a no-fault insurance program that pays benefits to employees who sustained work-related injuries and illnesses. 

workers compensation insurance programs are run by individual states and are designed to cover employee expenses incurred in work-related accidents and injuries a work-related injury or illness is a general physical condition that's caused aggravated precipitated or accelerated by the work or the work environment. 

let's explore the definition of covered persons covered injuries and the benefits provided under workers compensation. generally all employers are required to have workers compensation insurance to provide protections to covered employees. there are three important guidelines used to determine if a person is an employee subject to workers compensation benefits which vary by state.

first it must be an employee generally employers obligation to provide workers compensation extends to employees only and not to independent contractors statutory employees some states recognize independent contractors as employees although benefits may be reimbursable from the contractor and finally temporary or leased employees. 

these are employees who are hired for short term periods usually through a temporary employment firm that's responsible for providing workers compensation benefits under various state laws every employer is liable to pay compensation in every case of personal injury or death arising. 

out of and in the course of employment some exceptions include businesses without employees are not required to carry insurance individually or family-run non incorporated businesses owned by one person where any employees are immediate family members partners and businesses or farm operations where every employee is a partner or spouse parent or child of a partner regardless of age and finally closely held corporations limited liability companies family farms casual employees and household workers all have 

exclusion under certain conditions generally for an illness or injury to be covered by workers compensation the condition must be caused a groove ated or accelerated by work activities or the work environment the injury or illness must arise out of and during the scope of employment. 

this is sometimes referred to as the positional risk doctrine which holds that an employee injury arises out of employment if the injured workers employment required the worker to be at the place where the injury occurred at the time it occurred most statutes required that the injury be accidental. 

this is defined as an injurious occurrence that is unforeseen or unintended therefore self-inflicted injuries would not be compensable under workers compensation insurance in most cases typically workers compensation provides medical care disability coverage rehabilitation and death benefits for injuries or illnesses. 

related to employment workers compensation begins pain for an employee's medical care immediately after a workplace injury occurs workers compensation benefits in almost all states cover all necessary medical expenses and include physician fees nursing care and medications the primary role of disability. 

benefits is to compensate for wages lost while an injury or illness makes it impossible for an employee to work disabilities fall into one of four categories depending on whether their total or partial temporary or permanent a temporary total disability is one that prevents the worker from working at all but only 

for a limited amount of time a temporary partial disability is one that prevents the worker from doing some of the duties of a job for a amount of time a permanent total disability is one that prevents a worker from ever returning to work and finally a permanent partial disability occurs when the damage 

is permanent but only partially impairs the ability to work rehabilitation includes both physical and vocational rehabilitation services rehabilitation benefits pay for the medical and therapeutic care necessary to cope with and recover from injury or illness they also cover the care and training necessary 

to regain skills and abilities needed to return to work if an injury or illness prevents an employee from returning to a former job rehabilitation benefits might pay for evaluation retraining tuition and other expenses associated with helping the employee become qualified for work in a different job most states 

workers compensation programs provide death benefits to people who are related to the deceased worker for example a spouse a child a parent or sibling and were financially dependent on that person although most states provide funeral and burial expenses as part of this benefit the main purpose of the 

benefit is to compensate dependent family members for the loss of financial support most states calculate this benefit as a percentage of the deceased workers earnings some states have maximum and minimum amounts others provide lump sums employers have a number of responsibilities under state 

workers compensation laws if these requirements are not met employers can be fined and injured employees may be able to sue the employer in court employers must carry workers compensation insurance post notices and advise employees of their legal rights and provide claim forms to injured employees within 24 hours of receiving notice of the injury you.