What It Is

 Workers’ Compensation and How Does it Affect Workers?

Workers’ compensation works two ways:  it works to help the employee and the company.  Many companies see workers’ compensation as a necessary evil they must pay.  In fact, compensation for workers’ can help to protect a company against frivolous lawsuits from employees and can work as an insurance of sorts to provide medical care and loss of wages to employees.  This will help the company to get its employees back to work in a quicker amount of time which can ensure company stability and it can help to also protect the rights of the employee to ensure he or she is taken care of to some extent if an accident or injury occurs at work.


Workers’ Compensation Basic Information for Companies

Most companies in the United States are mandated by law to pay to a workers’ compensation insurance company in order to ensure that their employees will be protected in the event of an accident.  This results in the fact that if an employee suffers an injury on the job, the employee will be compensated for the loss of income if he or she misses work due to the accident.  The employee will also receive monetary compensation for any medical bills and treatment which were necessary because of an injury or accident which occurred at work.

If a company does not subscribe to an insurance company for workers’ compensation, that company can be penalized by the government and charged hefty fines as a form of penalty for not having complied with the law and provided workers’ compensation rights to its employees. Companies that have regular accidents occur will discover that their premiums will be raised due to high risk of accidents.  Ensuring that employees have proper accident prevention training and providing a safe and clean work place will help to keep the costs down of premiums paid to workers’ compensation insurance companies.


Workers’ Compensation Basic Information for Employees

Employees who are employed through a company have right to financial reimbursement from the company if the employee has an accident while he or she is working.  Many employees are required to sign safety procedure papers and if an employee has an accident which the employee could have prevented, the employee many not be eligible for compensation.  However, if an injury or accident occurred which was not the employee’s fault while the employee was performing work for the company, he or she will receive financial compensation through the company’s workers’ compensation insurance.

Recordings of the accident must be documented and signed by a supervisor.  The employee will almost always receive compensation for any medical expenses, recovery physical therapy, and medications prescribed as a result of the accident which took place at work.  In most cases, the employee will receive a percentage of his or her wages while he or she is off work due to the accident or injury which occurred.

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