What Is Workers Comp?

Workers comp is a type of insurance that is purchased by the employer that will cover the employee if there should be a work-related injury or illness. If an employee is injured on the job, their employee’s workers comp insurance should cover medical, rehab, and prescription costs. this also covers any time lost from work due to the injury or illness.

Employee’s Responsibilities And How Payments Are Determined

At the time of the injury, the employee must contact the employer so the employer can direct the worker to the allowed physicians for the proper treatment. If the physician’s require time from work, then workers comp then pays a portion of the salary that is lost.

The insurance will pay lost wages if the employee is totally or partially disabled due to the work injury and is unable to return to work either temporarily or permanently.

The state in which the employee works sets the amount of the benefits.The percentage is typically two-thirds of an average weekly wage, and it is calculated over 52 weeks prior to when the accident happened.

Each state has their own formula for determining the number of wage payments. An example of this formula is as follows: The weekly pay for an injured worker in New York last year was $600.00 and the physician determined the worker is 100% disabled, so, therefore, the worker would receive $400.00 a week during the time they are not able to work:$600.00 x 2/3 = $400.00 X 100% = $400.00.

Example Of Time Frame For Payments

The length for receiving payments is determined by the injury and as well as the treatment needed and is set by the state’s regulation period. An example of this would be in New Mexico, an example can receive compensation up to 700 weeks, but in California, a worker can receive compensation up to 204 weeks depending on the type and nature of the injury. These are the basis for determining lost wages in most states.