Having workers’ compensation benefits available is a blessing for the multiple people who suffer an injury while on the job. It is also a benefit to employers because it allows them to provide immediate care to employees who suffer injuries without concern about facing legal consequences in the future. The reason for this is that workers’ compensation is a no-fault system.
According to the California Department of Industrial Relations, workers’ compensation provides benefits for injured employees in return for them to not bring liability lawsuits against their employers. To make this work, the system must be a no-fault system. Assigning fault would prevent the system from working properly because it may allow for some employees to not receive benefits while also opening employers up to lawsuits from injured workers.
A small sacrifice
The no-fault aspect allows everyone to sacrifice a little to get the benefits. Employees will sacrifice their ability to sue their employers in exchange for immediate benefits. Workers’ compensation will pay for medical care related to the injury right from the beginning. Workers also may get payment for lost wages, depending on the severity of their injuries.
Employers have to pay for the workers’ compensation insurance. They cannot pass this expense to employees. So, employers have the expense of the insurance, but at the same time, it allows them to take care of their injured employees and avoid a lawsuit.
Without the system
Without workers’ compensation, employees could take employers to court for injuries. The court would then make a decision on fault and assign liability. Such a workers’ compensation lawsuit could end up costing a company an outrageous amount of money because there are no limits on what the court could award the employee in damages. This is the exact scenario for employers who do not have workers’ compensation insurance, and it creates a hardship for the employee who has to wait for payment and for the employer who will pay out more than it would if it had insurance.