There are laws in every state that require employers to provide compensation benefits to their employees. If you voluntarily maintain coverage or you are subject to the compensation laws of workers, you need to be aware of the benefits payable and the steps that need to be taken when a workplace accident happens. You also need to understand the benefits of tax implications and the interaction of worker’s compensation with benefit payments.
Worker’s compensation is governed by state law; they are in every city to protect the loss of income of employees and for payments of medical bills in case of work-related accidents, injuries, disease, and illness. In most states, the worker’s compensation coverage is compulsory. Although coverage may not be compulsory for an employer, Hunter Law Group advocates that it is wise to voluntarily participate in the program of your state to protect your employees and your business in general.
Common elements shared by each state’s workers compensation laws
An employee is required to get statutory benefits from you in case of a personal injury caused by accident in the daily undertaking of employment.
Hunter Law Group would also like to highlight that you are not required to include general contractors in your compensation, because covered “employees” are well defined by law.
The state agency covers the system’s administration.
When a third party causes an accident, the third party can be sued by the employee, and the proceeds that arise from the suit will first be given to the employer as reimbursement of the benefits the employee is paid.
Neither your lack of fault, nor the employee’s negligence in causing an injury are factors used to decide if an employee gets benefits.
It is important for an employer to keep in mind that the benefits of workers compensation are payable ONLY for injuries incurred at work. If there are self-inflicted injuries or those caused by substance abuse and intoxication, benefits do not cover these cases.
Do the laws of state workers’ compensation apply to you? Ideally, all employers who have at least 1 employee are covered. Although some states make an exemption for small employers, the definition of a small employer is the same from state to state.
The most common exemption is for companies with less than 3 employees, although some offer exemptions to employers who have less than 4 or 5 employees. Even if you are exempt, you can choose to be in a state program.
You should also be aware that if you are in a state that requires mandatory participation in workers’ compensation program, you may face imprisonment, fines, or denial of the right carry out your business in the state.
Ensure that you consult with the state to check if you are covered by workers’ compensation laws.
Advantages and disadvantages of a state-mandated workers’ compensation system
Advantages
- It is easy to plan for disabilities because the state has made the costs predictable
- The different types of benefits for your employees are only those described by the law
- The liability you have for injuries on the job depends on the remedies that are available in the workers’ compensation system
Disadvantages
- Fictitious claims may take up a lot of your time
- You may have an administrative overload with the filing requirements
- You may develop high premiums that depend on the accident record
Actions you need to take in case of an accident
Two important actions must be taken up by an employer when a job-related accident occurs:
- At first, you need to treat the injury legitimately, even if you are suspicious of the circumstance that caused the injury
- File an accident report in your state with the correct workers’ compensation agency. You can also use the services of a personal injury attorney Tampa when filing the accident report
Each state specifies different requirements on how to fill an accident report. Different laws in each state determine the period of time before reports have to be handed in. The payments that need to be awarded to the employee will be decided by the state agency. It is possible to appeal to the court of law only when you dispute the facts. Compensation benefits payments to your employee are made after a certain period; in most cases, it falls within 3-7 days.
