Typically, employers do not directly pay wages to employees receiving workers’ compensation benefits. Instead, these benefits, which can cover lost wages and medical expenses, are usually paid by the employer’s workers’ compensation insurance carrier. For example, if an employee suffers a work-related injury and is unable to perform their duties, they would file a claim with their employer’s insurance. The insurance company, after approving the claim, would then provide financial support to the employee while they recover.
This system provides crucial financial protection for employees injured on the job, allowing them to focus on recovery without the immediate stress of lost income. It also offers a level of liability protection for employers. The history of workers’ compensation dates back to evolving legal frameworks addressing workplace accidents. Originally, injured employees had to sue their employers for negligence to receive compensation, a challenging and often unsuccessful process. The establishment of workers’ compensation systems provided a no-fault system streamlining the process and offering a more reliable safety net.