Guide to Workers Compensation in US States

US state workers' compensation is a requirement for most employers to carry regardless of the state you live in. Information about your responsibilities as a business owner to carry workers' comp in US states varies depending on location. Workers' compensation protects your employees in cases where on-the-job injuries and accidents impact their ability to work. Knowing the facts about workers' comp can also protect you and your business from unnecessary lawsuits and loss of business income.

Information about workers' compensation in US states is state specific. It is important that as the employer you comply with state regulations. Yes, workers' compensation can be expensive for your business to carry, but being sued by an employee for extravagant sums can be much worse and can quickly ruin a small, struggling business.

Here are some steps for keeping up with workers' comp in US states:

1. Determine your requirements for paying workers' compensation in US states.

2. Set up a workers' compensation plan for your company.

3. Inform employees of their responsibilities under workers' compensation laws.

4. Process any claims that occur.

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

Find out if your business needs US state workers' compensation

Not all companies must offer workers' compensation. In situations where you own the company and employ no one else, you typically will not be required to have US state workers' compensation. Your industry and the number of employees in your company are also factors.

I recommend: Visit your state department of insurance to determine if workers compensation insurance is required or find specific requirements by state at WorkersCompensation.com.

Obtain an insurance quote for workers' compensation

Most states allow employees to purchase their workers' compensation insurance through private companies. A handful have state-operated plans and employees have to purchase plans from their policy.

I recommend: Receive a workers' compensation insurance quote online based on your business location to see all the options available. Use the workers' compensation buyers guide questionnaire from BusinessWeek to understand your business needs.

Educate employees on workplace safety standards to avoid workers' compensation claims.

By providing employee motivation and teaching workplace safety requirements, you can reduce on-the-job injuries and the chances of paying out workers' compensation benefits. Discuss information about workers' compensation in US states with employees to understand how injuries and large premiums could affect their jobs and income to discourage safety problems that cause accidents.

I recommend: View a sample workplace safety policy statement and workplace safety policy manual from Workplace Safety Toolkit to create your own documents.

Follow your state's workers' compensation laws to protect yourself

As the employer, you are required to file injury reports and pass on forms to your company's workers' compensation insurance. Stay professional as you handle the claim; allow the employee to see the doctor and when healed to return to work without facing prejudice.

I recommend: Use the  CompYellow Pages to find a private investigator to confirm that your employee is truly injured. Protect yourself by following the  Business Owner's Toolkit checklist for employees workers' compensation benefits.

Tips & Tactics
Helpful advice for making the most of this Guide

• Employees may be entitled to additional benefits for on-the-job injuries under two federal laws. The Family and Medical Leave Act (FMLA) allows an employee to take leave to take care of a family member, and the Americans with Disabilities Act (ADA) protects those with disabilities.

The official source of Workers Compensation in US States is
the Workers' Compensation in US States page at Business.com