Guide to Workers Compensation

In the United States workers compensation went into effect during the early 1900's. During this time the legal system was experiencing significant growth which led to increased protection of employee rights. These employee rights laws started out very industry specific, with the manufacturing industry leading the way. As a result, states that supported high risk industries experienced the adoption of such laws earlier than those that relied on other industries such as agriculture. It is partly the industry specific nature of these laws that have made it a state law instead of federal law. By 1948 every state and US territory had adopted some form of workers compensation law and would continue to develop it as time went on.
State workers compensation laws have been developed with two things in mind. The first was to provide guaranteed coverage for the employee to ensure that they will have adequate means to live if they are injured on the job. The second purpose for the laws is to protect the employer from being suited and losing everything because of an injury. The idea is that the system provides a structured plan to support the injured employee without causing undue hardship to the employer.
To help reduce the cost for your organizations workers compensation coverage there are several action steps you can follow:

Action Steps
The best contacts and resources to help you get it done

Find your state specific workers compensation laws

Every state has its own set of rules and regulations for workers compensation. It is important for you to look in all states that you do business in as coverage is differs state to state.

I recommend: Taking a look at your states individual workers compensation laws to ensure you are aware of  these different conditions.  A great resource for this is  WorkersCompensation.com, click on a states link to see the specific regulations.

Get a free quote

Use one of the many online services to get a free quote on what your insurance cost would be. It can be helpful to use two or three different services while researching to get a good idea of the industry average.

I recommend: Visiting  Insurance Finder or the quote request page at  WorkersCompensation.com.  These will provide some numbers to work with while looking for the proper insurance provider for you and your organization.

Visit the US Department Of Labor

While most regulations in the workers compensation laws are state specific, there are certain conditions that apply on a national level. These include coverage to injured employees for medical bills and lost wages. The most common difference is the waiting period for payment and how much of the wages are replaced.

I recommend: Checking out the  Department of Labor for more information on these topics.  As of next year the Department of Labor will be handing responsibility of reporting on these matters to WorkersCompensation.com, who has become the leading resource for national workers compensation coverage.

Become Educated

One of the biggest reasons for lawsuits pertaining to workers compensation is a direct result of a lack of knowledge! Protect your organization by becoming educated on this important law.

I recommend: Visiting HRSentry and signing up for the free online webinar on May 20th at 2pm.  For anyone seriously interested in learning the ins and outs of workers compensation, Americans with Disabilities Act, or the Family Medical Leave Act, this is a must.  It will be presented by a wonderful presenter and human resource professional, Brenda JM Sabin, CBP check it out.

Educate Employees

The final step to any successful workers compensation plan is making sure your employees understand it.

I recommend: Including the specifics of your workers compensation plan in your employee handbook.  This allows employees access to this information and keeps all levels of management on the same page.  For more information on this topic visit my "Importance of Creating an Employee Handbook" lens.  Another great resource for this and all Human Resource related needs is the HRSentry Solution.