@058 CHAP 11

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        ³        WORKERS' COMPENSATION INSURANCE        ³
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One of the "hidden" costs of having employees is the neces-
sity, at least in most states where you may do business, to
have Workers' Compensation Insurance coverage, a cost that
usually cannot, by law, be charged to the employees by the
employer.  One of the advantages of Workers' Compensation
coverage to you as an employer, however, is that if a wor-
ker is injured or becomes ill as a result of a job-related
injury or illness, he or she usually cannot sue you for
damages, but must instead file for Workers' Compensation
benefits, as set by law, which are paid by your W.C. in-
surance carrier.  A disadvantage of this system is that
Workers' Comp coverage is often quite expensive, particu-
larly if you have workers engaged in relatively hazardous
activities.

Workers' Comp insurance provides 4 types of major benefits
to injured workers (in most states):

    . Medical benefits, for medical and surgical expenses
      to treat the injury.

    . Death benefits, usually including burial costs and
      payments to the surviving spouse and/or children.

    . Temporary disability benefits, which usually begin
      after only a few days off the job (replacing some
      percentage of pay, in the usual case).

    . Permanent total disability benefits, usually a lump
      sum awarded by a state commission.

Workers' Comp is a "no-fault" system.  That is, the em-
ployee does not have to show that the employer was neg-
ligent in any way.  All the injured employee must show is
(a) that there was an injury and (b) that it occurred in
the course of employment.  This also means, generally, that
the injured worker gets Workers' Comp benefits as an ex-
clusive remedy, and can't sue the employer or co-workers
for negligence, except in certain rather extreme situa-
tions.

@CODE: TX
Texas is one of the very few states that does not require
an employer to obtain Workers' Compensation Insurance.  How-
ever, an employer runs a considerable risk by not having
such insurance.

@CODE:EN
@CODE: DC
In Washington, D.C., virtually all employers are required
to provide Workers' Compensation insurance coverage for
employees.

@CODE:EN
@CODE: AR FL GA VA NC NM SC RI MO MS
While Workers' Compensation Insurance is generally
mandatory (in most states) for small employers, such
coverage is legally required in the state of @STATE
@CODE:OF
@CODE: AR GA NC VA
only for employers with 3 or more employees.

@IF001xx]@NAME is exempt, with only 1 employee.
@IF001xx]
@IF002xx]@NAME is exempt, with only 2 employees.
@IF002xx]
@IF005xx]Your business appears to be subject to this requirement,
@IF005xx]as @NAME has @EMP employees.
@IF005xx]
@CODE:OF
@CODE: NM
only for employers with 3 or more employees.  However, as
of 1-1-92, no such exemption is allowed for businesses sub-
ject to the Construction Industries Licensing Act.  Note
that in New Mexico, every employer subject to the Workers'
Compensation Act who has an annual workers compensation
insurance premium of $5000 or more (or who self-insures)
is subject to an annual safety inspection.

@IF154xx]@NAME is in construction/contracting.
@IF154xx]
@CODE:OF
@CODE: SC RI
only for those employers with more than 3 employees.

@IF001xx]@NAME is exempt, with only 1 employee.
@IF001xx]
@IF002xx]@NAME is exempt, with only 2 employees.
@IF002xx]
@IF003xx]@NAME is exempt, with only 3 employees.
@IF003xx]
@IF005xx]Your business appears to be subject to this requirement,
@IF005xx]as @NAME has @EMP employees.
@IF005xx]
@CODE:OF
@CODE: FL
only for employers with 4 or more employees (1 or more
employees, if in construction).

@IF154xx]@NAME is in construction/contracting.
@IF154xx]
@IF005xx]Your firm appears to be subject to this requirement, since
@IF005xx]@NAME has @EMP employees.
@IF005xx]
@CODE:OF
@CODE: MO MS
only if an employer has 5 or more employees, in general.

@IF009xx]@NAME is exempt (only @EMP employees).
@IF009xx]
@IF005xx]Your business appears to be subject to this requirement,
@IF005xx]as @NAME has @EMP employees.
@IF005xx]
@CODE:OF
@CODE: WY
In Wyoming, Workers' Comp. insurance is required for all
"extra-hazardous" employment (which is very broadly de-
fined).

@CODE:EN
Workers' Compensation insurance is mandatory for most em-
ployers, in general, in @STATE.

@CODE: CA
@CODE:NF
For 1990 and subsequent years, 1989 amendments to the
California worker compensation laws place the burden of
proof for psychological disability on the employee, and
also require reporting of all work-related injuries.

As an employer in California, you are required by state
law to do the following:

    . Notify new employees in writing, of their right to
      Workers' Compensation in case they incur a job-
      related injury or illness.

    . Notify injured employees of their benefits.  After
      January 1, 1990, employers are required to give em-
      ployees a claim form (form DWC-1) within 24 hours
      of an injury.

    . Post a notice to employees that gives the insurance
      carrier's name and that advises employees of their
      rights to compensation if injured on the job and to
      select their own physician.

Effective January 1, 1990, the California Workers' Com-
pensation Act of 1989 made several major changes in the
California Workers' Compensation laws:

        . Raised both minimum and maximum benefits;

        . Created a commission of "qualified medical
          evaluators";

        . Placed the burden of proof for psychological
          disability on the employee;

        . Now requires employers to give employees a
          claim form (form DWC-1) within 24 hours of
          an injury; and

        . Requires reporting of all work-related in-
          juries.