Workers' Compensation 101: What You Should Know

You’ve probably heard the term “workers’ compensation” numerous times in your life. But what exactly does it mean? As workers’ compensation lawyers in Anaheim, we wanted to break it down as simply as possible, so everyone can understand what it is.

Basic Purposes

Most states require workers’ compensation programs that essentially require employees to purchase an insurance policy. This policy handles statutory obligations to workers who have been injured or made ill because of workplace situations.

To put it simply, workers’ compensation laws provide specific benefits to workers who suffer from workplace injuries or illnesses. Benefits include medical expenses, death benefits, lost wages and vocational rehabilitation. Failure to carry workers’ compensation insurance may leave the employer exposed to paying the benefits out of pocket and paying penalties levied by the state.

So, Who Needs It?

Generally speaking, sole proprietors and partnerships aren’t required to purchase workers’ compensation insurance. Some states don’t require an employee to be covered if he or she is paid solely on a commission. A good rule of thumb is as follows: if you hire any employee who isn’t an owner of the company, you need to get workers’ compensation insurance.

If you have further questions about workers’ compensation, our experienced workers’ compensation lawyers in Anaheim are happy to answer your questions. We’ve already helped thousands of clients and we want to help you, too.

Information courtesy of: Entrepreneur