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Worker's Compensation

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Every prospective employer needs to know something about workers’ compensation and what it entails. While each state’s programs may differ, each state will have similar employer premiums that are not passed on to the employee and will also have reporting and accounting requirements.

Essentially, workers’ compensation is a mandatory program that assures employees injured on the job receive necessary medical treatment, disability, therapies, and even partial compensation for their injuries. This could keep employees from suing the employer for injuries, unless there is a high degree of negligence or recklessness on the part of the employer that resulted in the injury.

Workers’ compensation in Washington, for instance, is very typical in how it’s administered, what it does, and what it requires of the employer.  In Washington state, workers’ compensation is administered by the Department of Labor and Industries, and each employer, except certain family farms or perhaps major railroads, is charged a specific premium for each employee. In some classifications, the premiums can easily reach 10% or more of the hourly wage.

Each employer must report the hours employees work, the wages they receive, and his or her job classification. The employer must then pay the appropriate premiums.  In addition, each employer must report any injuries on the job. Failure on the part of any employer to pay the premiums, violation of reporting requirements and negligence or recklessness on the employer’s part can also result in substantial corporate penalties.

Employers should be aware of the cost of doing business and plan accordingly. Your company’s payroll and compliance team must rigorously adhere to all workers’ compensation policies.

Disclaimer: This article is informational and shouldn't be substituted as legal advice.

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