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Is Workers' Compensation a Scam?

Is Workers' Compensation a Scam?
Tainted Joe - Sun May 06, 2012 @ 06:36PM
Comments: 14

Workers' compensation covers workers whenever they are made sick, injured, or disabled on the job. They usually receive a portion of their salary plus medical costs until they are either able to return to work to their former position, or they are retrained for a new line of work, or they are moved horozontally into another line of work. Workers' compensation is no fault, meaning by claiming benefits, the injured, sick, or disabled worker holds his employer harmless in return for his workers' compensation benefits payout. The employer likewise holds the employee harmless and is not allowed to fire him or subject him to any wage offsets. One of the immediate benefits is that each party avoids court. The payment of workers' compensation benefits and receipt thereof are essentially a deal to stay out of court.

So, what is the catch? What is workers' compensation, really? It is definitely a bargain for the employer, right? In most cases an employee on workers' compensation is not getting paid his full salary as benefits. He's usually getting something like 50% of his salary while he rests up and gets better, rehabilitates or trains. By receiving benefits, the employee is basically giving up his right to recover 100% of his wages in return for something less than 100%. By staying out of court, he is being given a guarantee he gets something, because going to court could get him something between 0% and 100% recovery. He's entitled to 100%, but in some cases, it may be worth it to take a guaranteed 50%. You just never know. There are many variables. Plus, in some cases, the worker may be the cause of his own work related injuries, in which case, taking a workers' compensation payout of 50% in return for his employer guaranteeing not to sue him and letting him keep his job is a good thing. But, say the employer is at fault and the employee loses a limb. In this case, taking workers' compensation is probably not the route to a full recovery. So is workers' compensation a scam? Every work related illness or injury is different. In some cases yes, in some cases no.

Comments: 14


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10. DavidRichard   |   Wed Jul 18, 2018 @ 01:23AM

This article is so helpful. Workers can claim personal injury if they get injured at work. But if they get injured with their own fault then they are not able to make a claim. May be there a chance of 50% compensation for them.
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