Software of the Month Club 1996 May/Software of the Month Club 1996 May.iso/mac/ISO9660/ZIPFILES/SBA962.ZIP/F239.SBE

Text File | 1996-02-15 | 7.3 KB | 208 lines

@058 CHAP 11

        ┌───────────────────────────────────────────────┐
        │        WORKERS' COMPENSATION INSURANCE        │
        └───────────────────────────────────────────────┘

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,
since 1-1-92, no such exemption is allowed for businesses
subject to the Construction Industries Licensing Act, re-
gardless of the number of employees.

@IF154xx]@NAME is in construction/contracting.
@IF154xx]
Certain types of employees are not required to be covered
by workers' compensation, including domestic servants, farm
and ranch workers, and certain executive employees.  Indi-
viduals who are not considered to be "employees," such as
sole proprietors, partners in a partnership, and independ-
ent contractors such as "qualified real estate salespersons"
(as defined), are generally exempted from coverage.

A "qualified real estate salesperson" is someone who meets
all the following requirements:

  . A licensed salesperson, associate broker, or broker
    under contract with a real estate firm;

  . Receives substantially all his or her remuneration
    based on performance or sales output; and

  . Performs services pursuant to a written contract that
    specifically provides that he or she will not be
    treated as an employee with respect to such services.

Note that in New Mexico, every employer subject to the
Workers' Compensation Act who has an annual workers com-
pensation insurance premium of $5000 or more (or who self-
insures) is subject to an annual safety inspection.

Firms subject to the Workers' Compensation Act must post
an official workers' compensation poster in the workplace.
There are potentially severe legal consequences for failure
to display this poster.  Obtain copies of the poster from
the state Workers' Compensation Administration.

Employers in New Mexico who have covered employees are
also subject to a special workers' compensation tax, based
on the number of covered employees, and must register sep-
arately for it.

@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, which:

        . Raised both minimum and maximum benefits;

        . Created a commission of "qualified medical
          evaluators";

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

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

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