What Does Workers' Compensation Benefits Mean?
Workers' compensation benefits are paid out to workers in the United States who get disabled while on the job, either through an injury or an illness. These benefits can include payment for medical bills, coverage for rehabilitation, retraining for another job, and monthly payments to replace lost income. Typically, workers compensation benefits pay out about two thirds of the worker's salary. However, the payments are tax-free so the worker earns about the same amount.
There is no limit to the payments under workers' compensation benefits. A worker will keep receiving money as long as they meet the disability requirements for their state's program.
Insuranceopedia Explains Workers' Compensation Benefits
Workers' compensation is a state-run insurance program to help disabled workers. Each state has different rules for coverage and benefits, so workers should check with their own state to see what they have in place.
Employers pay the insurance premiums for workers' compensation benefits. However, not all employers need to cover workers compensation, and some workers are excluded from this program, such as seasonal workers.
Workers' compensation only covers disabilities that happen at work. If an employee gets hurt or sick outide of work, they will not be eligible for workers compensation benefits.
If a worker becomes disabled and starts receiving benefits, they typically give up the right to sue their employer for damages. If the disability was caused by intentional or reckless negligence by the employer, then employees can still sue but most of the time they can't.