Workers compensation free essay sample

Workers Compensation is essentially a form of insurance that provides wage replacement and medical coverage to employees that are injured while working. This compensation, however, is not freely given to the employees. It is instead exchanged for the employee’s right to sue his or her employer for the tort of negligence. Depending on jurisdiction, Workers Compensation can function as various types of insurance. Wages that is lost while recovering from an injury can be paid to the employee as if they were capable of working, thus functioning as a form of disability insurance. Workers Compensation can also effectively function as health insurance as well as life insurance by paying for the injured employee’s medical expenses and paying benefits to the dependents of employees killed while working, respectively. While Workers Compensation and those that work in that specialized field can be a wonderful financial asset to injured employees and their families, such benefits and professionals that work in this field were born out of necessity due to the negligence of employers towards their employees. We will write a custom essay sample on Workers compensation or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page While it is debatable when exactly the first Workers Compensation laws were passed, Maryland was the first state to pass a statewide Workers Compensation law in 1902 with the establishment of the Employer and Employee Cooperative Fund (Maryland state workers, 2013). A few years later in 1906, the first federal workers compensation law was passed; the Federal Employers’ Liability Act (FELA) (What is the, 2013). FELA is designed to compensate railroad workers that have been injured while working, but it does not operate the same as current workers compensation laws. Under FELA, the injured railroad worker must prove that injuries sustained while working are the fault of the railroad company; being unable to prove the railroad company’s fault in the incident results in no benefits being paid to the injured party. By 1949, all of the states in the United States had some kind of Workers Compensation laws enacted to protect employees and provide for them as well as their fami lies in a time of need (Workers compensation, 2010). For an employee to receive Workers Compensation, however, certain standards are to be met and it is up to the professionals working in the Workers Compensation field to know the laws of their jurisdiction. To be sure that these professionals know exactly what they are doing and execute their job to their best extent, special education and training is required to be completed. Training and education of Workers Compensation employees depends on the jurisdiction in which they operate in, but there are several factors and major duties that are central to every Workers Compensation employee. Workers Compensation employees mainly have to deal with the legislation of the jurisdiction in which they work, so they must know the laws of the state, this is a central factor that is common to all professionals in this field. Education and training will ensure that professionals know the purpose of Workers Compensation laws, methods of securing Workers Compensation, circumstances of injuries, perks and disadvantages of workers compensation for both the employee and employer, interaction of other workers compensation acts, how to respond to an on-the-job accident, and how to reduce on-the-job accidents. The purpose of workers compensation laws is to provide financial coverage of any medical expenses, income protection of those absent from work due to medical reasons, and compensation for permanent injury such as loss of life or limb. Methods to secure workers compensation are: through an approved private insurance carrier, state-funded insurance, and self-insurance which is usually only provided by larger companies that can guarantee coverage regardless of the event of bankruptcy.(â€Å"Workers’ compensation training,† 2008) The circumstances of an injury include, â€Å"arising out of employment,† and â€Å"in the course of employment.† â€Å"Arising out of employment† refers to the cause and origin of the sustained injury and â€Å"in the course of employment† refers to the time, place, and circumstances of the injury. A vast majority of workers compensation laws state that in order for an injury to be compensable, it must arise out of and in the course of employment. This essentially means that in order for an injury to be compensable, the injured party must have been working at their designated position during payable hours. There are various benefits of workers compensation for an employer as well as the employee. Benefits for the employer include injured employees not being able to sue for the tort of negligence and benefits payable to the injured employee is limited. Benefits to the injured employee include full medical coverage and punctual payment of medical expenses, payments are based on the injured party’s current earnings disregarding gross income, and in the event of death payments are made to the deceased’s dependents.(â€Å"Workers’ compensation training,† 2008) Unfortunately there are also various disadvantages of workers compensation for both the employer and the employee. Disadvantages for the employer include high premiums simply because of the type of work done by the employer and the premiums are based upon the employer’s accident record, an increase in paperwork due to the filing of claims and state regulations, and time spent dealing with the potential event of a fraudulent claim. Disadvantages for employees include not being able to pursue further damages through a tort action and some state’s workers compensation benefits are trumped by Social Security disability benefits.(â€Å"Workers’ compensation training,† 2008) In some cases it is necessary for other Workers Compensation acts to become involved in a claim. The involvement of such acts depends upon the severity of the injury sustained and the size of the employer. Established acts that may necessarily be considered alongside workers compensation are the Americans with Disability Act (ADA) and the Family and Medical Leave Act (FMLA).(â€Å"Workers’ compensation training,† 2008) In order for a workers compensation professional to determine if the ADA or the FMLA will be a factor alongside regular workers compensation, several factors based on jurisdiction must be considered. These factors include the threshold number of employees for that particular employer, employee eligibility, severity of injury or illness, and the length of absence in which the injured party will be unavailable to work.(â€Å"Workers’ compensation training,† 2008) If either the ADA, FMLA, or both become involved with a workers compensation claim, a workers compensation professional must remain conscious of several requirements. These requirements include accurate medical documentation of the injury, continuation of benefits for the injured party during leave of absence, appropriate medical clearances for the injured party to return to work, potential of â€Å"light duty† for the injured party once returning to work, and all standards to be met for full working reinstatement of the injured party.(â€Å"Workers’ compensation training,† 2008) Unfortunately injuries, severe or not, do occur in most workps laces. A workers compensation professional must be trained to be capable of handling all types of these situations. The training and education of workers compensation professionals will enable them to administer first-aid to the injured party or direct them to medical treatment, gather any and all information about the injured party from the injured and other witnesses, notify the injured party of their workers compensation coverage, accurately document the incident and notify the injured party’s family/dependents, take any further necessary steps to ensure that a similar incident will not happen in the future, and file a workers compensation claim as soon as possible.(â€Å"Workers’ compensation training,† 2008) With workplace incidents unfortunately being all too common, there are steps that can be taken to avoid said incidents. Some tactics that can be used to reduce workplace incidents include educating the workforce in safety measures that can be taken to avoid injury, establish a committee that is devoted to educating the workforce about safety, and hold managers responsible for preventing workplace accidents.(â€Å"Workers’ compensation training,† 2008) Not everyone can work in the workers compensation field, a certification is required. Certification is gained through various means based on jurisdiction and employer. A government employer may require special certification but most workers compensation professionals can gain a certification through universities/schools. There are also many workers compensation professional organizations that can be joined. Such organizations include the American Association of State Compensation Insurance Funds, National Council of Self-Insurers, Workers Compensation Claims Association, Workers Compensation Insurance Association, Workers Compensation Research Institute, as well as many others. Joining one of these professional organizations can allow workers compensation professionals access to various resources and receive support during workers compensation claims (Workers compensation associations, 2008). The demand for workers compensation professionals is moderate to high depending on region and the field desired to work in. A high-risk employer will have a higher demand for well-trained and educated workers compensation professionals than a low-risk employer. The average salary of a workers compensation manager is between $48,000 and $69,000 while the average salary of a workers compensation administrator is between $72,000 and $94,000 (Workers compensation administrator, 2013), (Workers compensation manager, 2013). The average salary for both listed positions is higher than that of the national average in part because of the historical successes of the field. One of the first court cases to help establish workers compensation was that of New York Central Railway Co. v. White. In this case, the injured party tried to claim workers compensation but the Railway Company felt that its 14th amendment rights to due process were being violated because of the inconsideration of fraud on behalf of the injured. The court ultimately sided with the claimant and many states soon followed suit. A more recent success was a case involving Pennsylvania State University v. Workers Compensation Appeal Board. In this case, a professor for the University met at a restaurant with a student to discuss the student’s dissertation. While at the restaurant, the professor fell and reinjured his recovering broken arm. The injuries sustained at the restaurant resulted in a fatal infection and the court sided with the claimant, rewarding the professor’s widow with workers compensation benefits. Workers Compensation is good and necessary. This establishment prevents employers from abusing employees and their rights while providing financial coverage from work-related injuries. It also helps employers to avoid unnecessary litigation from torts being filed by employees. Workers Compensation provides a great middle ground for both employers and employees to meet upon and come to an often swift and satisfactory decision that is in the best interest of all parties involved.