Income Tax Rates

Worker's Compensation was established to protect both employers and employees. Employers can budget costs by using insurance plans to cover payments to injured workers rather than risking litigation. Employees have access to an income when unable to work due to a job related illness or injury. While Worker's Compensation statutes are different in every state, the basic plans are very similar.

In the majority of the states, companies purchase coverage from insurance companies. Only a handful of states utilize a public plan, which is funded by mandatory payments from employers. Other states have a hybrid program. Under these arrangements, employers are to contract with insurance companies for coverage. Those that cannot obtain coverage in this manner, such as those rejected by private carriers as high risk, will pay into a public plan.

If unable to work due to an accident or job related illness, workers receive a set percentage of their normal salary while they are disabled. Sometimes, payments can continue indefinitely as long as the employee is unable to work. In other states, there is a time limit, and once this point is reached, a lump sum payment is issued and monthly disbursements are discontinued.

Medical expenses related to the covered injury or illness are covered in full or in part, depending on the state. Prescriptions, medical equipment, doctors, hospitals, physical therapy, and rehabilitation services are included.

Should an employee be deemed fit for work in a different position other than the one held prior to the incident, most states furnish training for the new job. For example, someone whose previous position required standing all day, but who can no longer do so, might be trained as a computer operator. If an employee refuses to accept the training or the position may have to forfeit future benefits.

A worker who is injured on the job should immediately report the incident to a supervisor or manager. Management will collect the statements of any witnesses and prepare a report. Normal procedure is to arrange a drug test for the injured employee, since the presence of illegal drugs or alcohol usually invalidates the claim. Most employers also have designated hospitals or doctors for the initial treatment of work related injuries as well as follow up treatment.

Anyone receiving payments or benefits are obligated to work with the Worker's Compensation program toward complete recovery. Failure to obey medical orders, attend any therapy ordered, or to take part in re-training often leads to termination from the program. Benefits can also be stopped if the employee refuses to accept an altered position after being deemed capable of resuming a limited work schedule

If hurt on the job, or made sick by toxins or working conditions, it is vital that workers report the injury and file worker's compensation claims immediately. managers and supervisors should offer workers claims forms to fill out. It can also be a good idea to consult an attorney who specializes in worker's compensation law, if the worker suspects the employer or the insurance company could challenge his / her claim.