Making Workers Compensation Fair For Both Sides
Most businesses in the United States have handled a problem related to workers compensation. Workers compensation law requires employers to get insurance policy for their statutory obligations when their employees become injured or ill as a result of their employment. At present, most of the workers compensation programs are being administered by individual states; while few regulations are being run by the U.S. Department of Labor. Businesses, small or large, often tackle the issue of workers compensation as a daunting challenge.
Nonetheless, there are ways to make workers compensation fair for both sides.
The first way to make workers compensation fair for both sides is to be clear, consistent, and transparent. The U.S. Department of Labor's Office of Workers' Compensation Programs have four major disability compensation programs which cover wage replacement benefits, medical treatment, vocational rehabilitation, and other benefits. Most modern workers compensation laws now have comprehensive and specific benefits for workers suffering from work-related injury or illness. Specific benefits include medical expenses, lost wages, vocation rehabilitation, and death benefits. Otherwise, failure to carry workers compensation insurance may lead to certain fines and penalties. Nonetheless, to be fair, workers compensation also helps employers by eliminating the need for employers to pay for these benefits from out-of-pocket. When work-related injuries happen, employers have to provide benefits to the injured employee. If the employer pays upfront, the costs may be high, but with insurance policy, the costs may be lower and payouts won't have to affect operational funds.
Another way to make workers compensation fair for both sides is to be clear about the total costs of benefits. Wages from workers compensation are paid by either federal or state workers compensation agencies, insurance agencies on behalf of the employers, or employer funds. The payouts are coordinated with Social Security which ensures that the benefits for workers do not exceed 80% of prior earnings. Setting a limit for benefits received under workers compensation make it fair for the employers.
Making workers compensation fair for both sides also involves protecting the employees and employers from retaliation issues. Filing for a workers compensation claim puts an employee at a risk of retaliation. The law prohibits employees from retailing against an employee for filing a claim for workers compensation. Retaliation may come in the form of firing an employee, inappropriately refusing to give a promotion, or discriminating the employee at work.
While employees benefit from retaliation protection, employers benefit from return-to-work programs. These programs help reduce the costs of workers compensation payout costs and increase productivity by helping employees resume work sooner.
In sum, workers compensation is fair to both the employees and employer. With clear set of coverage, payout limits, retaliation protection, and return-to-work programs, employers can satisfy their liability and obligation to employees without the need to pay out from their pockets upfront and employers to be fairly compensated in a case of workplace injury.Contact a law firm, like Galanti Law Office, for more help.