Workers compensation claims are handled by state agencies, and every state has its own bureau of workers compensation. The states answer to the U.S. Department of Labor, which is the national organization that sets rules and regulations for employees and employers in the workplace. Some states call the organization the Bureau of Workers Compensation. Others use Workforce Safety & Insurance, Department of Labor, or Department of Industrial Relations to handle workers compensation claims and related processes.
Each state agency takes claims from employees, reviews those claims, and approves or denies the compensation based on the nature and details of each incident. Typically, the incident must lead to injury that requires the employee to be off work for some time. Sometimes, cases can be difficult to determine and further investigation is required by a representative of the state agency. Sometimes hearings are conducted by phone to make further determinations.
Workers compensation is a form of insurance that employers are required to carry. It’s designed to protect workers, in the event they become injured on the job and are unable to perform their usual duties. It pays workers while they are out, to protect them from income loss through not fault of their own.
Workers compensation can be costly to employers, even if they have many safety and wellness programs in place. Some types of work are simply riskier and come with additional hazards. But, having several workers compensation claims can be a financial disaster to employers.
There are insurance companies that offer benefits to employers, so they don’t have to bear the cost of several employee workers compensation claims on their own.
Insurance companies are workers compensation organizations that provide benefits to employers, so they don’t have to pay out large claims themselves. In industries where risk of injury is inherent, this could be too costly to the company, to pay for each claim individually. Hartford, Traveler’s, and many more companies offer worker’s compensation insurance to employers.
Workers compensation actually began in the late 1800s, when workers in high risk jobs were given some form of compensation for being injured on the job. Later, worker’s accident insurance was created. Public pension and public aid then came along, to give workers benefits if they could not work due to non-work related injury, illness, or disability. These forms of aid paved they way for compensation to employees who got hurt on the job and could not return to work for some time.
Workers compensation organizations play a vital role in today’s workforce. There are many jobs today that still pose risk of injury to employees, due to the risky nature of the work. Employees who get hurt on the job, whether in losing a limb from a machine or by slipping and falling on a wet floor, need income protection when they get hurt on the job.
The first state passed workers compensation laws in 1911 and it took 37 more years for the rest of the states to follow. But, workers today have protection when they get hurt on the job. Workers compensation organizations play a huge role in compensating employees who are unable to work for a while, due to getting hurt on the job.