Workers' Compensation
What does "Workers' Compensation" mean in law?
Workers' compensation is a statutory no-fault insurance system that provides medical benefits and wage replacement to employees who suffer work-related injuries or occupational diseases, in exchange for the employee relinquishing the right to sue the employer in tort. This 'grand bargain' ensures that injured workers receive prompt, certain benefits regardless of fault, while employers gain protection from potentially larger tort judgments and the unpredictability of litigation. Benefits typically include medical expense coverage, temporary and permanent disability payments, vocational rehabilitation, and death benefits for dependents. Workers' compensation claims are adjudicated through specialized administrative tribunals, and disputes over coverage, causation, or benefit levels are subject to administrative and judicial review.
Definition
Workers' compensation is a statutory no-fault insurance system that provides medical benefits and wage replacement to employees who suffer work-related injuries or occupational diseases, in exchange for the employee relinquishing the right to sue the employer in tort. This 'grand bargain' ensures that injured workers receive prompt, certain benefits regardless of fault, while employers gain protection from potentially larger tort judgments and the unpredictability of litigation. Benefits typically include medical expense coverage, temporary and permanent disability payments, vocational rehabilitation, and death benefits for dependents. Workers' compensation claims are adjudicated through specialized administrative tribunals, and disputes over coverage, causation, or benefit levels are subject to administrative and judicial review.
Example
A delivery driver who injures his back lifting packages during a shift is entitled to workers' compensation benefits for medical treatment and lost wages, regardless of whether the employer was negligent.