Workers' Compensation

Definition

Workers' Compensation is a system established by statute under which employers are responsible for medical expenses and disabilities of workers injured while on the job. Compensation is payable even if the employer is not at fault and even if the carelessness of the worker contributed to the injury, but the employer is not necessarily liable for damages for pain and suffering.

Purpose

The purpose of workers' compensation is to provide financial and medical support to employees who are injured or become ill due to their job, ensuring they receive necessary care and compensation without the need for lengthy legal processes.

Examples of Use

• Medical Coverage: Paying for medical treatment and rehabilitation for injured workers.
• Disability Benefits: Providing income to workers who are temporarily or permanently unable to work.
• Vocational Rehabilitation: Assisting injured workers in returning to work through training and support.

Related Terms

• Occupational Safety and Health Administration (OSHA): A federal agency that sets and enforces workplace safety standards.
• Disability Insurance: Insurance that provides income to individuals who cannot work due to a disability.
• Employer Liability Insurance: Insurance that protects employers against claims for work-related injuries and illnesses.

Notes

Workers' compensation laws and benefits vary by state and country. Employers are generally required to carry workers' compensation insurance to cover potential claims.