© 2011 pearson education, inc. all rights reserved employment law: new challenges in the business...

© 2011 Pearson Education, Inc.All Rights Reserved

Employment Law: New Challenges in the Business Environment, 5eMoran

Chapter 21

Workers’ Compensation

Employment Law:New Challenges in the Business Environment



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Appreciate the purpose of Workers’ Compensation.

Know the function of the Workers’ Compensation Board.

Learn that eligibility hinges upon the injury occurring within the scope of employment.

Be aware that an employee must notify the employer of the injury sustained.

Be apprised that employees may not sue their employer in court.

Chapter Checklist



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Be cognizant that employers will pay for medical expenses, lost wages, retraining, and death benefits.

Realize the Workers’ Compensation is governed by each state.

Recognize that some employees submit fraudulent claims, hoping to collect benefits.

Understand that Workers’ Compensation is absolute regardless of fault.

Appreciate that Worker’s Compensation is a form of no-fault insurance.

Chapter Checklist



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Workers’ Compensation

Employers negligence is absolute when the injury occurred on the job

Employers are immune from lawsuits for unintentional torts

Injury: includes diseases that occur in the workplace, Ex: lung disease from asbestos

Workers Comp. saves time and expense of defending a lawsuit



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Reporting a Claim

Employees must report injury to: His/her boss File a claim with the Workers Compensation board

Workers Comp. Board: Provide injured workers with support and medical

treatment quickly and to provide incentive to employers to have a safe working environment for their employees



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Workers Compensation Board

Employers must carry workers’ compensation insurance

All employees are generally covered by their employer’s workers compensation insurance.

Exceptions: Small businesses, officers, owners, independent

contractors and domestic help



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Covered Conditions

Physical injuries: falling, noise, toxic chemicals, machinery, vehicles and repetitive motions are covered

Mental & Psychological conditions: Traumatic stress disorder



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False Representations

A worker who lies about his/her physical or mental health will be prevented from recouping compensation if the following are true: The representation was made intentionally Reliance was justifiably placed on the lie The lie influenced the employer in hiring of the

employee The resulting injury is of the same condition as the

one falsely represented



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Employer Defenses

Industrial Revolution circumstances paved way for the recent laws about Workers comp. Employees were responsible for their own injuries They could only sue coworkers to get money

because laws were in favor of the employer Injuries were considered workers negligence



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Temporary Injuries

Are on a schedule of benefits that determines the amount of compensation given to the employee

Once the time limit has been reached, payments end

Employees do not have to lay out their own money



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No-Fault Insurance

Workers’ compensation is a type of No-fault insurance

Medical expenses for on-the-job injuries resulting in permanent injury or death are fully covered

Disability payments for loss of earnings will be payable for life at a fixed rate

If employee dies the benefits will be paid to surviving spouse and to any children under 18

© 2011 pearson education, inc. all rights reserved employment law: new challenges in the business...

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