Workers’ Compensation: What Is It and How Does It Work?

workers compensation

Worker insurance is the compensation insurance that is paid at the time of illness or injury to cover medical and other expenses. It includes lost wages, medical expenses, and compensation to the family if the employee is killed on the job. It is also known as workers’ compensation or workers’ comp. 

Different states have different jurisdictions for workers’ compensation but regardless of location, the legislation has at its root the basic model of worker’s accident laws set forth by Prussian Chancellor Otto von Bismarck. The workers’ compensation law of 2012 is the most recent legal document available to formulate guidelines regarding workers’ compensation.

One of the important factors to consider while understanding the phenomenon is that such compensation is only paid if the insurance agency and the employer agree that an accident, particular injury or illness is work-related. To better understand workers’ compensation laws and navigate the claims process, you will need the help of a Charlotte work injury lawyer

Factors Determining Workers’ Compensation

The workers’ compensation cost is determined by the type of business class. Similar businesses exhibiting the same type of injuries and illness during work have similar compensation programs thus classifying business and related injuries into varying groups. It forms a balance in the system where equitable cost is charged in compensation depending upon the nature of work and injury involved.

What Kind of Business Requires Workers’ Comp?

The basic rule states that soon after the organization or company hires its first employee workers’ compensation needs to be concluded. This has certain exceptions where certain states do not require strict compliance with workers’ compensation laws thus providing flexibility in opting for such regulations. 

How You Can Claim Workers’ Compensation?

To make compensation claims, the respective party needs to make an immediate visit to a professional health practitioner so that a medical report can be prepared for the worker’s comp claim. Employees then can start the legal process, fulfilling all sorts of paper requirements. The whole process is carried out by the human resource team. Once the state mandatory paperwork gets approved, the filer can receive compensation for all medical facilities. In any case, if this claim is rejected by the employer or the insurance carrier, employees can also opt for disability benefits. Most of the law requires such claims to be made within 24-48 hours. 

Workers’ compensation is provided regardless of who is at fault if the injury or illness is work-related. For online and virtual assistance regarding workers’ compensation and how it works, you can always rely on the services of professional work injury lawyers. 

How to Determine the Cost Paid Under Workers’ Compensation?

The cost paid in workers’ compensation varies depending upon the nature of work and injury and varies from state to state. Factors like average income per annum, the total number of employees, previous claim history, and the type of industry play an important role in defining the compensation amount. Industries or workplaces like construction companies or warehouses with a significantly large amount of risk and injury are likely to pay higher amounts, compared to those with fewer risk factors.

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How Can Workers’ Claims Be Reduced?

Companies can take preemptive measures to reduce such claims and lower their premiums. 

  • Business owners must ensure a safe working environment by complying strictly with the work safety measures. This includes equipment upgrading, installing safety gears where necessary, and conducting safety training and workshops on properly using heavy machines and tools.
  • Ensuring employees return to the workplace through a return to work program. This makes the employee come back more effectively and early.
  • The opening window for two-way communication. This means that employees can easily reach out to business owners and can share their concerns regarding safety with the concerned authority. Pay attention to their concern and make sure serious measures should be taken to avoid a financial burden of workers’ compensation cases.
  • Very clearly explain the policy of the company regarding workers’ compensation and how it works before hiring any employee. A clear and open explanation would help to create an atmosphere of trust between the employer and employee. 
  • You can also introduce a wellness program for ensuring the health and fitness of your employee which in return decreases the chances of health hazards.

Provisions of the Workers’ Compensation Act

Under the workers’ compensation act, it is mandatory for all businesses with three or more employees to ensure and obtain workers’ compensation insurance. Exceptions involved in this act are certain railway employees, those household workers directly hired by house owners, federal government employees, casual workers, and farm laborers employed daily by farmers. 

Companies with a high hazard probability are also required to comply with workers’ compensation provisions. Under the North Carolina general statutes, sole owners, corporate officers, executive officers, members of nonprofit originations, and other such employees are not referred to as employees directly.

What Penalties Can Be Imposed for Not Complying With Workers’ Compensation Insurance? 

If business owners fail to comply with the worker’s comp policies, they can face some serious penalties including:

  • Financial retribution as high as $50,000
  • Can be charged with wrongdoing and crime
  • Jail
  • Civil penalties
  • Stop-work orders ceasing all business activities till compliance with the worker’s comp insurance policies comes into effect

How Can a Charlotte Work Injury Lawyer Help Your Workers’ Comp Claim?

If you are living in Charlotte, the best law firm providing effective and satisfied guidance and service regarding workers’ compensation is Ted A. Greve and Associates. If you have faced any sort of work injury, contact us today to talk with a Charlotte personal injury attorney ang get the help you need filing a case and ensuring you get workers’ compensation and all other benefits without much struggle.