Chapter 16: Workers' Compensation Insurance

Migrant and Seasonal Agricultural Worker Protection Act

Allows farmworkers and other agricultural workers working on a seasonal basis or traveling across state or national borders to find work to be covered by federal workers' compensation laws

Funeral Expense Benefit

A statutory maximum amount, varying from state to state, provided as a burial allowance

Contributory Negligence

An employer common law defense to avoid paying a Worker's Compensation claim

Defense is used to argue that the employee was partially at fault and, therefor, not eligible to recover benefits from the employer

Covered Injuries

Injuries that arise out of, and in the course of, employment

- Injury must occur while employee is at work

- Employee is working the hours they are designated to work

- Employee is performing duties they are employed to do

- Injury must arise from a risk that is reasonably related to employment

Defense Base Act

Allows workers on military bases outside of the United States to be covered by federal workers' compensation laws

Disability Income Benefits

- Temporary Total

- Permanent Total

- Temporary Partial

- Permanent Partial

U.S. Longshore and Harbor Workers' Compensation Act

Allows non-crew workers of ocean vessels to be covered by federal workers' compensation laws

Second Injury Fund

Pays compensation on behalf on an employer to an employee who has already suffered a prior disabling injury, and now sustains a subsequent injury, and the combination of the 2 injuries creates a greater disability than the second injury would have created itself

Workers' Compensation

Covers all work related injuries and occupational diseases

Occupational Accidents

Unexpected and unplanned events that occur in the course of employment and cause injury to one or more employees

Occupational Disease

Disease that must:

- Arise out of the course of employment, and

- Be caused by conditions that are particular to that employment

Rehabilitation Benefits

Physical therapy and vocational training are utilized with the objective of returning the injured employee to work as soon as possible

Monopolistic vs. Competitive

Monopolistic: Workers' Compensation insurance only available through state fund

Competitive: Workers' Compensation insurance available through private insurers; state fund competes with the private insurers

Exclusive Remedy

The employer assumes absolute liability for injuries to employees and injured employees are barred from suing the employer, even if they refuse Workers' Compensation benefits

As long as they provide Workers' Compensation insurance in compliance with state law, the employer is protected from litigation brought by employees for workplace injuries

Assigned Risk Plan

A state-required plan where all insurers must participate, providing workers' compensation insurance for those persons not able to obtain insurance through the voluntary market

Assumption of Risk

An employer common law defense to avoid paying a Worker's Compensation claim

Places all risk on the employee as being responsible for knowing the work conditions prior to employment

Federal Employees Compensation Act

Allows all civilian federal employees in the United States to be covered by federal workers' compensation laws

Federal Employers Liability Act (FELA)

Allows interstate railroad workers to be covered by federal workers' compensation laws

Federal Mine Safety and Health Act

Allows individuals working in coal mines to be covered by federal workers' compensation laws

Fellow Servant Rule

An employer common law defense to avoid paying a Worker's Compensation claim

Removes the employer's negligence if a fellow employee contributed in any way to the loss

Jones Act

Allows crews of ocean vessels to be covered by federal workers' compensation laws