Workers Compensation Insurance

In the U.S., employers are required to purchase the workers compensation insurance for their employees.  However, the large and clearly solvent companies are allowed to self-insure and act as their own insurance companies. An exception to this rule are companies that have three or four employees who are not required to carry this insurance at all.

When a worker is injured, his or her claim is filed with the insurance company. For self-insuring employers, the company pays the medical and disability benefits following a state-approved formula. Employers without the workers’ compensation insurance are subject to criminal prosecution, fines and civil liability, unless they fall within limited exempt categories.

Employer’s Duties for Workers Compensation Insurance

In most states, employers must perform these duties and obligations:

1. Employers are required to post notice of compliance with workers’ compensation laws in a conspicuous place at each job site;

2. Shall provide immediate emergency medical treatment to employees who sustain on-the-job injuries;

3. Shall refer and furnish further medical attention if an injured worker advises in writing not to do so and unable to select a doctor.

4. Promptly report an employee injury to the nearest workers’ compensation board office. A copy of the report shall be mailed to the employer’s insurance carrier. Employers who neglect to make an injury report can be punished by a fine for misdemeanor.

5. Shall submit a written report of every accident that cause personal injury causing a loss of time from regular duties, during overtime or beyond the working day or shift on which the accident occurred. This report also includes accidents that need two medical treatments beyond first aid by a doctor.

6. Shall comply with all requests for more information relative to injured workers by the workers’ compensation board or the insurance company. This information could include; reports on return to work of injured employees, payroll statements of the employee’s earnings before and after the accident, and such other information that will determine the work status of the employee following an injury.

It is Duty of Employers Not to Retaliate

The workers’ compensation laws provide remedies for both the employer and injured employee. It is designed to be the only remedy that employees may seek from their company. But sometimes, there are employers who blatantly discriminate injured workers who file workers’ compensation benefit claims.

To protect employees, many states prohibit employers from discriminating, punishing, or discharging employees who choose to exercise their rights under the workers’ compensation laws. The tort of a retaliatory discharge for example can be brought to court as a civil case against the employer.

In a retaliatory discharge civil action, the employee must convince a judge or jury that he/she was unjustly removed and terminated. The test lies whether the employer’s action is caused and rooted significantly or substantially in his or her exercise of rights under the workers’ compensation laws. Beside from termination, there are other forms of subtle retaliation such as salary reduction and demotion.

Protection from discriminatory conduct of an employer is immediately enforced right after an injury and even before a claim of the benefits is filed. Once the employee gives notice to the employer for a claim, such action is sufficient enough as per the workers compensation insurance laws.