By HR Brew Staff
less than 3 min read
Definition:
Workers’ compensation is a government-mandated, employer-funded insurance program that provides monetary and medical benefits to workers who incur work-related injuries. In exchange for these benefits, workers waive their right to sue their employer for negligence.
What does workers’ compensation cover?
Workers’ compensation benefits generally cover lost wages and medical costs, as well as disability, rehabilitation, and job retraining.
Who is eligible for workers’ compensation?
Most employees—including those employed on a full- or part-time, or temporary basis—who have suffered a work-related injury or illness are eligible for workers’ compensation.
How is workers’ compensation regulated?
Workers’ compensation is primarily regulated at the state level, with 49 states and the District of Columbia requiring it. Texas is the only state where employers are not legally obligated to provide workers’ compensation.
What are employers’ obligations regarding workers’ compensation?
Employers are responsible for paying workers’ compensation insurance premiums as mandated by the relevant state legislature.
Can you put workers’ compensation into context?
“In 2012, an Arby’s employee working in Georgia filed for workers’ compensation after accidentally drinking lye from a cup employees typically used for drinking,” HR Brew reported in January 2024.
