California Workers Compensation Law: 5 Things You Need to Know

California workers compensation law requires employers to provide their employees with workers’ compensation benefits in the event of injury. These benefits protect employees from lost wages in the event of an injury experienced on the job.

Here are five things you need to know about California workers compensation law.

California Workers Compensation Law

Most people have some idea of what Workers Compensation Law entails. You get hurt at work and somehow you are compensated. This is basically true but there are many different scenarios that affect not only how you get compensated but even “if” you get compensated at all.

There is a lot to know about Workers Comp.

Here are a few important aspects.

1. Workers Compensation Benefits Covers Injuries

What does this mean? You could suffer any type of physical injury on the job, such as:

• slip or fall
• twist an ankle
• hurt by machinery
• pulled muscle
• back strain from lifting
• be injured while traveling on company business

But there are also non-physical injuries that may be covered by Workers Comp when they occur due to work:

• psychological trauma
• chronic illnesses
• exposure to a toxic substance or chemical
• mental distress

So Workers Comp covers both physical and psychological ailments that are tied to normal working conditions. What are some situations that may not be covered?

• You suffer intentionally self-inflicted injury
• You participate in a volunteer off-duty activity

There is also something called an “idiopathic” fall where a fall is particular to that worker that may not be covered by Workers Comp.

In fact, there are three classifications of “falls”:

1. Explainable falls obviously associated with employment
2. Unexplained falls
3. Idiopathic falls

Similarly, there are three categories of risk:

1. Risks distinctively associated with employment
2. Neutral risks
3. Idiopathic risks personal to the worker

Workers are encouraged to report any injury to their employer as soon as possible, and employers should contact their insurance carrier in a timely way to avoid penalties.

Since the definitions and legalities of Workers Compensation Law cases are so diverse, it is wise to consult an attorney where Workers Comp may be invoked.

2. Eligible Claims Cover Lost Wages and Medical Bills.

When employees are not able to work while covered by Workers Comp, they will receive a portion of their income. The benefits for temporary wage loss provided during the healing period include temporary partial disability or temporary total disability.

Eligibility for these temporary disability compensations is determined by a doctor. Coverage will probably include all reasonable and necessary medical expenses along with any needed vocational rehabilitation or retraining.

3. Employees Can (Sometimes) Sue the Employer

If a worker gets injured on the job and receives Workers Comp, and therefore receives wage compensation and medical benefits, he or she cannot sue the employer.  Workers Comp is set up as a kind of compromise between employer and worker to handle these situations.

Can the worker ever sue the employer? If the employer was reckless or if there was some intentional harm to the employee, then a suit is possible.

The other way a worker could sue is if the employer did not have Workers Comp as a company policy. An injured employee could sue and the employer would be liable for a settlement. The employer would have to pay, even if the company went out of business.

Workers Comp avoids legal situations like this. Companies should have this policy, but not all companies do. They are governed to some extent by state regulations, and these vary state to state.

4. Not All Employers Have Workers Compensation

It may depend on the kind of business involved, but many firms do not have Workers Comp. States may not cover it for farmers, volunteers or seasonal help.

Workers Comp policies are dictated by state laws, and states look at various facts like type of work, type of business and number of employees. These may be unique to the locale being governed.

State governing boards are responsible for overseeing the different Workers Compensation Law systems within their state boundaries. They also watch over claims and actions that may be taken against companies that do not have Workers’ Comp.

Most states require this type of insurance, but some states also have public funds available in the event someone is injured at a company where there is no coverage.

Some states, like South Carolina and Florida, require coverage in companies with four employees or more. In Texas, the coverage is optional but companies are still held responsible for worker injuries. No two states have the same regulations.

5. Occupational Safety and Health Administration (OSHA)

While the states have regulations and requirements for Workers Comp and policies and procedures for making claims, they are not alone in seeking worker safety.

The Occupational Safety and Health Administration (OSHA) has its own federal regulations for workplace safety. Business owners and management need to know what those are, because they govern much of the operational policies needed by companies to protect their workers.

OSHA has policies that enable workers to have access to medical and (hazardous) exposure records, be eligible for personal protective equipment, have access to file complaints, and be given notices about workplace health and safety.

Smaller companies are excused from having to keep OSHA records. But it they have 10 or more employees, they still need to report worker fatalities or any needed hospitalization.

Unless required by another federal department, small businesses with 10 or fewer employees don’t have to keep OSHA records, but you’re still expected to report employee fatalities and hospitalization.

Worker and Employer Alike Should be Aware of Their Options

No employee goes to work thinking he or she will be injured on the job. But when starting to work for a new company, especially one that might have hazardous working conditions, it is a good idea to understand the company policies regarding injury.

Does the company have a Workers Comp plan? Is there an HR handbook or an HR representative who can explain existing policies and what to do in case of injury?

Workers should be somewhat aware of what OSHA does and learn how to file a claim if needed. Seeing unsafe working conditions that are not attended to should be a red flag for any worker involved.

Employers, on the other hand, do not want to run the risk of losing their business. A single claim could bankrupt that business. Employers should consult with their insurance carriers to review terms and conditions of their policy so they also understand what can happen and how to not only handle claims properly but work to avoid them by providing a safe working environment.

These are general guidelines regarding Workers Compensation Law. Workers should consult their company HR official and or/ a personal attorney for specific advice. Employers should consult their insurance company and/or their corporate employment law attorney for company advice.