Charles Spinelli: A Primer on Workers’ Compensation
Workers’ compensation (workers’ comp) is a federal program. This program gives benefits to workers who become ill or injured on the job. According to Charles Spinelli, worker’s comp is a disability insurance program that provides healthcare benefits, cash benefits, or both to workers who suffer illness or injury as a direct result of doing their jobs.
In the United States, states typically handle workers’ compensation. The required benefits vary from state to state.
It may also be important to note that Texas is currently the only state not requiring employers to provide workers’ compensation insurance. In other states, not all employees are covered by worker’s comp. Some states even exclude small businesses from the mandate. Other states have different requirements for various industries.
Below, Charles Spinelli looks at some of the benefits of worker’s comp.
Medical Reimbursement and Survivor Benefits
Most compensation programs offer coverage of medical expenses only for workers who are injured doing their work. For example, a construction worker may claim compensation for an injury or injuries suffered in a fall on the construction site but not for an injury incurred while driving home in their car.
Charles Spinelli says that in other situations, workers may also receive the equivalent of paid sick days during their medical leave. Workers’ comp pays the worker’s dependents in the unfortunate event in which a worker dies because of a work-related accident.
Under workers’ comp, the salary replacement paid to an employee is typically less than the worker’s full salary. The most generous states pay about two-thirds of the employee’s gross salary.
Workers’ comp benefits are typically non-taxable at the state or federal level. Taxes may be due to individuals with income from the Social Security Disability programs.
Types of Workers’ Compensation
In the U.S., the Department of Labor has the Office of Workers’ Compensation Programs. This office covers federal employees, energy employees, longshoremen and harbor workers, and coal miners.
However, the lack of clear standards for workers’ comp has resulted in varied policies for similar types of injuries from state to state.
Identical injuries could receive different compensation packages depending on where a person lives. It is estimated that about half of workplace illness and injury costs are borne by the workers who suffer them. Often, immigrant and low-income workers don’t even apply for benefits.
Final Notes
When you agree to get workers’ comp, you also waive your right to sue your employer for negligence.
Charles Spinelli also mentions that this compensation bargain aims to protect both workers and employers. Workers give up legal recourse in exchange for compensation, while employers guarantee compensation while avoiding the potentially higher cost of a negligence lawsuit.
Charles Spinelli shares important information on human resources in his blogs. Read them on this page.