Federal Employment Laws That Impact Compensation and Benefits

Workers’ Compensation

Workers' Compensation is a no-fault insurance plan used to pay for workplace injuries. The coverage, benefits, and costs vary from state to state, and no national standards have been established to date. A national agency that works closely with workers’ compensation administrators is the Occupational Safety and Health Agency or OSHA. Depending on the incidences reported and on-going compliance, OSHA representatives may make on-site visits to inspect health and safety conditions of the work environment.

States choose different ways to administer Workers’ Compensation. For example:

• employer self-insurance may be permitted
• a state insurance fund may be used
• private insurance carriers may be acceptable

Workers’ Compensation Benefits

Benefits are usually based on a worker's pay at the time of injury and the state average weekly wage. Worker’s Compensation Benefits provide for:

• permanent total disability and temporary total disability
• permanent partial disability
• survivor benefits for fatal injury
• medical expenses
• rehabilitation

Maximum and minimum benefit payments for specified injuries and total claims are typically defined by law, as are time limits. Workers’ compensation includes payment for:

• medical treatment
• death benefits and
• salary replacement benefits

Workers’ Compensation Costs

Costs to employers are influenced by the provisions of state law, as well as by the employer's accident record. The cost of Workers' Compensation has been rising dramatically in recent years due to:

• A rise in medical costs
• Redefinition of on-the-job injury or accident
• Employee misuse of the system
• Lawyers inserting themselves into a process that is supposed to be a no-fault system.