Workers’ compensation benefits compensate employees for medical bills, lost wages and other economic losses due to injury or illness that occurs in the course of their employment. All states require employers to pay for workers’ compensation benefits.
Do Employees Pay for Workers’ Compensation Insurance?
Workers’ compensation benefits are completely paid for as a payroll expense by the employer. There is no deduction from employee paychecks for workers’ compensation coverage.
What Are the Options for Workers’ Compensation Coverage?
The options for workers’ compensation coverage vary by state. In some states, employers may be able to or may be required to purchase workers’ compensation insurance through a state-run insurance program. In others, employers may purchase insurance through private insurance companies or opt to self-insure.
What Does Workers’ Compensation Cover?
Employees who are injured on the job or become ill with a work-related illness are entitled to receive compensation. This compensation covers several different types of economic losses:
- Medical treatment
- Lost wages
- Disability leave
- Cost of ongoing care
- Funeral costs if the injury or illness results in death
How Do Employees Receive Compensation?
Employees should report any work-related injury or illness to their employer. The report should include a description of how the injury or illness occurred, when it occurred and what type of injury or illness resulted. Once this report has been received, the employer should file a workers’ compensation claim on behalf of the employee. The employer may request that the employee complete a claim form.
The insurance company will then investigate the claim and either approve or deny it. If the employer self-insures, they may use a third-party claims administrator to process the claim. The insurance company should notify the employer and the employee when they have made their decision. If the claim is approved, the insurance company may either reimburse the employee for out-of-pocket expenses or pay medical providers directly, similarly to how a health insurance company operates. They should also issue payments to the employee for lost wages and other expenses.
How Is Compensation Calculated?
State regulations govern the percentage of weekly wages employees receive when they miss work due to work-related injury or illness. State regulations also govern the maximum percentage and length of time employees can receive compensation for various injuries.
All states require employers to provide workers’ compensation benefits, though the exact procedures, requirements and insurance options may vary. If you need assistance from a workers’ compensation lawyer in Buffalo, NY, like from Hurwitz, Whitcher & Molloy, Attorneys at Law, don’t hesitate to call a law office to schedule a consultation.