Workers' Compensation

What Is Workers' Compensation? Workers' compensation is a no-fault insurance system that provides medical care, wage replacement, and other benefits to employees who are injured or become ill as a result of their employment. In exchange for these guaranteed benefits, employees generally give up the right to sue their employer for negligence. Nearly every state requires employers to carry workers' compensation insurance. ## Benefits Provided - Medical treatment and rehabilitation costs - Temporary disability payments (typically two-thirds of average weekly wage) - Permanent disability benefits for lasting impairments - Vocational rehabilitation and job retraining - Death benefits and funeral expenses for surviving dependents ## Key Principles Workers' compensation operates as a no-fault system, meaning employees do not need to prove employer negligence to receive benefits. However, injuries must arise out of and in the course of employment. Claims for injuries caused by intoxication, self-infliction, or willful misconduct may be denied. Independent contractors are generally not covered by workers' compensation, making proper worker classification critical. Employers who retaliate against employees for filing claims face significant legal penalties.