Question and answers verified to
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What do employers award in a Worker's Compensation case? - ANS - Employers award the
prescribed compensation regardless of the employee's negligence.
How much do US employers spend annually for WC insurance? What is the breakdown? - ANS
- About $100 billion annually (~$2 per $100). 25% medical 50% compensation pay ~25% admin
costs/legal services.
What are the objectives of Worker's Compensation? - ANS - They vary widely across states, but
the widely accepted objectives are:
income replacement
injured worker rehab (until fit to return, vocational training)
accident prevention (lower premiums - fewer accidents)
cost allocation (higher premiums - high risk)
Who is not covered by worker's compensation? - ANS - The policy varies across states, but
generally:
Agricultural workers
Domestic workers
Hazardous workers
Charity/religious workers
Railroad & Maritime (FELA)
Contractors/Subcontractors
Minors
Extraterritoriality employees
Employees of small organizations
What era is Worker's Compensation from? - ANS - The "sweat shop" era.
Why do most companies purchase WC insurance? - ANS - To satisfy WC obligations.
Who has a difficult time affording any costs involved? - ANS - Small businesses.