© Copyright Acquisition International 2025 - All Rights Reserved.

Article Image - How Do Worker’s Compensation Laws Differ Around the USA?
Posted 27th February 2023

How Do Worker’s Compensation Laws Differ Around the USA?

IMG Source – https://unsplash.com/photos/p3Ip8U0eNNM Workers’ compensation is essentially an insurance that provides workers with lump sum compensation, a wage replacement, and medical benefits if they incur injuries, or become ill as a result of performing their jobs. The system is designed to both support workers financially, whilst limiting the liability of employers in the case […]

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

How Do Worker’s Compensation Laws Differ Around the USA?

IMG Source – https://unsplash.com/photos/p3Ip8U0eNNM

Workers’ compensation is essentially an insurance that provides workers with lump sum compensation, a wage replacement, and medical benefits if they incur injuries, or become ill as a result of performing their jobs.

The system is designed to both support workers financially, whilst limiting the liability of employers in the case of accidents and uncertainties in the workplace. It now forms a key component of labor law in the United States, with subtle differences and variations across different states.

The benefits, their administration, and the caps imposed on them by various states leave sizable impacts on the insurance and liability protection expenses of businesses, and as such, affect the overall cost of doing business.

Here are some ways in which workers’ compensation laws differ across the US,

Different Levels & Caps On Benefits

A key difference between workers compensation laws across state lines is the amount of benefits offered to workers. In some states, the compensation awarded can be fairly generous, at a percentage of a worker’s pre-injury wages, which can be quite substantial.

Although paid by an insurance company, such an approach to workers’ comp means businesses having to contend with massive premiums on a yearly basis, often depending on the nature of their business, and level of risks posed to workers.

On the other hand, there are states that impose a cap on an employer’s liability pertaining to workers’ compensation, on a per accident, per disease, and per employee basis. This helps provide much needed certainty for both employers and insurance companies alike, making it more suitable for business.

Compensation awarded further differs based on the level of injury, for example, in the case of total disability, a workers compensation claim in South Carolina can extend to two-thirds of the total average weekly wage, times 500 weeks, or 9.6 years.

Claim Administration

Another key area of difference between states when it comes to workers compensation is how claims are handled and administered. In some states, injured workers are required to file claims with relevant state agencies in order to receive compensation, in others, the process is entirely handled by private insurers.

This makes a huge difference pertaining to the ease at which claims are handled, with claimants likely to face certain frictions while working with state agencies, while it is largely seamless when filing claims with private insurance companies.

On the other hand, state agencies are essential for protecting worker’s rights, and it is almost never in the interest of insurers to dispense funds, even though most private insurers will strive to maintain reasonable claim settlement rates and a reputation for fairness.

Types of Injuries

A major difference between states is the type of injuries that are covered under workers’ compensation laws.

While in general, most states do offer coverage for physical injuries and occupational illnesses incurred at the workplace or while carrying out official duties, many states refuse coverage for mental health illnesses, even if they are related to work.

This includes PTSD, depression, and more, that can be a result of a hostile work environment, or stress-induced owing to extensive periods of work. However, workers do have other avenues to claim compensation in this regard, even if they don’t come under the purview of workers comp.

Dispute Resolution & Return To Work

Many workers’ comp claims involve certain disputes between workers, employers, and possibly even other parties. How this dispute is dealt with and resolved is also specified in certain state laws, with some requiring the process to be handled via an administrative process.

Other states, however, allow workers to directly sue their employers, where the circumstances surrounding the injury or accident is reviewed, before arriving at a settlement.

There are even laws pertaining to how the worker has to be treated after returning to work, with no discrimination, or hostilities towards workers being tolerated in most states, even if they sue their employers.

Final Words

A codified workers’ compensation law provides much needed certainty for businesses, workers, and insurers alike.

While the laws and rules pertaining to this vary greatly across different states, on a broad scale, most state laws do a great job in protecting the interests of both employers and employees when things go wrong.

Categories: News


You Might Also Like
Read Full PostRead - Eye Icon
Quantitative Easing and How it Affects The UK Economy
Strategy
02/07/2020Quantitative Easing and How it Affects The UK Economy

Quantitative easing is a monetary policy used by the governments of nations during difficult economic times to boost the economy. Quantitative easing comes into play when a nation is grappling with drastic economic slowdown or recession.

Read Full PostRead - Eye Icon
Sterling Bancorp Acquires Damian Services Corporation
Finance
08/04/2015Sterling Bancorp Acquires Damian Services Corporation

Sterling Bancorp Acquires Damian Services Corporation

Read Full PostRead - Eye Icon
AIMCo Announces Acquisition of HSBC Bank
M&A
28/02/2017AIMCo Announces Acquisition of HSBC Bank

Alberta Investment Management Corporation, on behalf of certain of its clients, is pleased to announce the successful acquisition of HSBC Bank Place and Enbridge Place, located in Edmonton, Alberta. The transaction closed on February 27, 2017.

Read Full PostRead - Eye Icon
Bridging Success in 2015
Strategy
31/01/2015Bridging Success in 2015

There is currently a huge appetite for short- and medium-term property loans across the UK, and Dragonfly Property Finance is leading the way.

Read Full PostRead - Eye Icon
Intertwining Technology to Solve Business Solutions
Innovation
30/08/2019Intertwining Technology to Solve Business Solutions

Globus Eight Inc provides IT security and support, healthcare domain support and IoT framework services. Following their recent success in AI’s Global Excellence Awards 2019, we profiled the firm and caught up with CEO, Alok Sinha who provided us with a deta

Read Full PostRead - Eye Icon
Bulge Bracket Banks Increased their M&A Advisory Market Share in 2015’s Record-Breaking Merger Spree
Finance
02/03/2016Bulge Bracket Banks Increased their M&A Advisory Market Share in 2015’s Record-Breaking Merger Spree

The largest investment banks notched a 20% gain in market share of the US M&A advisory market during last-year’s record-breaking technology M&A spree, according to a new report by 451 Research.

Read Full PostRead - Eye Icon
AIXTRON Acquires PlasmaSi
M&A
15/04/2015AIXTRON Acquires PlasmaSi

AIXTRON a leading provider of deposition equipment to the semiconductor industry, today announced that it has acquired privately held Silicon Valley-based PlasmaSi, Inc. effective April 1, 2015.

Read Full PostRead - Eye Icon
Technology Transactions
Innovation
29/06/2016Technology Transactions

As with many sectors, the value of technology transactions was impressive during the second half of 2015. In all USD 319,086 million-worth of deal making was recorded over the six months.

Read Full PostRead - Eye Icon
Strategy, Management & Legal
Finance
08/01/2018Strategy, Management & Legal

Grand Hill Consulting is one of the most successful restructuring boutiques in Brazil.



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow