Understanding Workers’ Compensation

What is Workers’ compensation?

Workers’ compensation is a type of insurance that provides medical and wage benefits to employees who are injured at work. It covers medical costs and some lost wages. In exchange, the employee gives up their right to sue their employer for negligence.

If the employer could prove Contributory Negligence to be true about the injury, the worker couldn’t claim any compensation.

Historically, the Fellow Servant Rule limited employer liability for workplace injuries.  This common law doctrine was prevalent in the 19th and early 20th centuries. However, in today’s legal framework, this rule is largely obsolete. Similarly, under the Assumption of Risk doctrine, employees were considered to have acknowledged and accepted the risks associated with their duties upon signing their employment contracts. 

Many industries further protected themselves by having employees sign agreements waiving their right to seek legal recourse for injuries. Thus, these agreements were referred to as “death contracts.”

However, in today’s legal framework, both the Fellow Servant Rule and the Assumption of Risk doctrine are largely obsolete. Most workers’ compensation systems now operate on a no-fault basis, where employees are entitled to benefits for injuries sustained at work, irrespective of whether a coworker caused these injuries. The primary concern under modern workers’ compensation laws is that the injury occurs during employment rather than the specific cause of the injury.

Workers’ Compensation in California

California Labor Code 3700 is a crucial law that determines the exclusivity of workers’ compensation. This law makes any attempt to waive such protections through prior agreements void. The Division of Workers’ Compensation (DWC) and relevant case law also enforce these principles to ensure that employees cannot relinquish their rights under the Workers’ Compensation Act. Generally, waivers that employees sign to relinquish their rights to compensation for work-related injuries are not enforceable in California.

The state’s workers’ compensation system provides benefits for injuries or illnesses resulting from employment, regardless of fault, to protect workers. The McGill rule states that although “anyone may waive the advantage of a law intended solely for his benefit,” a “law established for a public reason cannot be contravened by private agreement.”

Nevertheless, it’s important to understand that workers’ compensation eligibility varies depending on whether a worker is classified as an employee or an independent contractor. While employees are usually covered under their employer’s workers’ compensation insurance, independent contractors are not eligible for such benefits due to their high level of independence and control over their work. This means that independent contractors must obtain their own insurance coverage, including any necessary occupational accident or liability insurance. 

However, it’s crucial to accurately classify workers as employees or independent contractors to ensure compliance with workers’ compensation laws and other employment regulations. Misclassification can result in severe legal and financial consequences, including penalties for failing to provide workers’ compensation coverage to eligible employees.        

What are the benefits provided under Workers’ Compensation?

Medical benefits:  Coverage of treatment costs, surgeries, medications, etc. 

Disability benefits: Temporary total, temporary partial, permanent total, and permanent partial disability benefits. 

Rehabilitation benefits: Vocational rehabilitation, retraining, etc. 

Death benefits: Support for dependents of a worker who dies from a job-related injury or illness. 

Temporary disability benefits: Our lawyers will help you get temporary disability benefits to replace the wages of workers who are disabled for a certain period after an injury or surgery. These usually last a few weeks or a few months. 

Permanent disability benefits: If you suffer injuries after your work injury that impair you permanently, you may qualify for permanent disability benefits. 

Vocational rehabilitation: If your injury prevents you from performing your previous job to the fullest extent, you may be eligible to receive a voucher to pay for retraining at eligible schools. 

Does the worker’s compensation cover all the work injuries?

It’s important to know that while workers’ compensation does cover most work-related injuries and illnesses, there are some limitations and exceptions to what is covered. 

Exceptions to the exclusive remedy rule for actions against the injured worker’s employer include 

1. Dual Capacity,
2. Fraudulent Concealment,
3. Employer Assault or Ratification,
4. Power Press, and
5. Uninsured Employer

If any of these exceptions apply, the worker retains the right to bring a civil suit against their employer. Moreover, they can simultaneously pursue a workers’ compensation claim.

Facing Legal Issues?

If you’re facing the challenges of a workers’ compensation claim, don’t try to handle it on your own. Let the experienced attorneys at KAASS LAW assist you. Our team can help with claim denials and benefit disputes and guide you in your legal options. Contact us today to see how we can help make the process smoother for you.   

Call us today at 844.522.7752 or visit our website to schedule a consultation. Let us help you secure the benefits you deserve.