Who Regulates Workers Compensation?

Workers' compensation gives benefits to injured workers while on the job, including those who have an illness or disability caused or made worse by their working conditions.   If they don't, it's important to work with labor unions and the Department of Labor.

In line with this, the Department of Labor established the Office of Workers’ Compensation Programs (OWCP), which in turn, manages programs on the workers' compensation system. Continue reading to learn more about how these programs protect employee welfare.

Who Administers Workers’ Compensation?

The Office of Workers’ Compensation Programs (OWCP) oversees providing injured employees or their dependents with wage replacement benefits, medical treatment, vocational rehabilitation, and other benefits.

There are four programs serving four specific employee groups:

• Energy Employees Occupational Illness Compensation Program
  All Department of Energy contractors, subcontractors, uranium miners, millers, ore transporters, or eligible survivors of such employees will be covered from occupational illnesses linked to toxic exposure.
• Federal Employees' Compensation Program
  Under the Federal Employees Compensation Act, federal employees injured will have assistance with medical expenses, compensation, and other benefits, including return-to-work benefits once they are able to do so.
• Longshore and Harbor Workers' Compensation Program
  The Longshore Program aims to lessen the impact of land-based and maritime employee injuries and death by ensuring they are provided with workers' compensation.
• Coal Mine Workers' Compensation Program
  The Coal Mine Program, also known as Black Lung, provides workers' compensation coverage to coal miners whose injuries or death are linked to pneumoconiosis and other lung diseases.

What To Know About Workers’ Compensation

Workers' compensation is a government-mandated program that provides benefits to cover job-related injuries and occupational disease. It is a mandatory requirement in the U.S., especially for those with high chances of industrial accidents.

In general, workers' compensation benefits cover salary payments, medical care, rehabilitation costs, and death benefits as necessary. In some cases, the total exceeds the minimum requirement and is usually paid after a successful lawsuit due to employer misconduct or negligence.

How Are Workers’ Compensation Policies Paid?

Employers paying for workers’ compensation should see to it that the process is done right. First, they should acquire the amount from the insurance provider. Basically, the employee involved may receive this benefit in two ways: annual audit or pay as you go.

Annual Audit

In an annual audit, the insurance company computes the total payroll and completes the audit once a year.

Pay-As-You-Go (PAYG)

In a PAYG set-up, employers may pay the workers’ compensation after each payroll period. In this case, the amount is not a set estimate, instead, it will be the exact workers’ compensation amount.

Who Can Be Denied For Work-Related Injuries?

Though employees may file freely for workers' compensation claims, some may be denied. Here are the most common reasons for denied coverage:

• Drug-induced workplace injury
• Off-the-job or off-workplace injuries
• Injuries from intoxication
• Self-inflicted injuries
• Injuries caused by fighting with other employees
• Injuries as a result of company policy violation
• Claims submitted after being laid off or terminated
• Felony-related injury
• Injuries suffered by an independent contractor

Choosing Workers’ Compensation

With numerous companies in the insurance industry, most employers find it hard to choose the best workers' compensation policy. Here are a few tips for small businesses and established companies looking for the best workers' compensation insurance provider:

• Review the workers' compensation laws and regulations in your state before shopping for policies.
• Ask about discounts and credits, such as formal training programs, workplace safety programs, and payroll reporting.
• Choose the correct classification codes for your employees.
• See if they offer digital services, like customer portals and online payment tools.
• Check if they offer claims management support.

Workers’ compensation insurance is essential for employees and employers like you. By following the guidelines set by your state and educating yourself about the process, you can provide a better workplace for your people.

Learn more about worker’s compensation and other trucking insurance guides by exploring the rest of Assured Standard today!