Workers’ Compensation and Employers’ LiabilityWho is an employer?Employer Liability Under Common LawState Workers’ Compensation LawsCommon Features of Compensation LawsSlide 6Slide 7Common Features of Compensation LawsThird-Party ClaimsFederal Compensation LawsWorkers’ Compensation and Employers’ LiabilityWho is an Employer?Employer Liability Under Common LawState WC LawsFederal Compensation LawsThe WC and Employers Liability PolicyWho is an employer?Characteristics of employersEngages the services of individualFixes hoursProvides toolsDefines methods and meansEmployer versus independent contractorProprietors and partners are not employeesEmployer Liability Under Common LawEmployer’s Duty of CareProvide a safe place to workProvide an adequate number of competent fellow employeesProvide safe tools and equipmentWarn the employee of inherent dangersMake and enforce rules for the safety of all employeesCommon-Law DefensesAssumption of riskContributory negligenceNegligence of fellow employeeState Workers’ Compensation LawsOriginally held unconstitutionalMaryland 1902 - unconstitutionalFederal law 1908 - provided new benefitsNew York 1910 - unconstitutionalWisconsin 1911 - upheldNew York 1913 - upheld Principles of WC LawsPrompt payment of determinable benefitsElimination of delays and reduced costsGuarantee of benefit payments through insurancePromotion of safetyCommon Features of Compensation LawsChoice of LawEmployee chooses which benefits to receive if more than one state law applies:State where injury occurredLocation of usual employmentWhere employee was hiredPersons and Employments CoveredCovers employees and not independent contractorsException - must cover employees of uninsured independent contractorsCommon Features of Compensation LawsDescription of Injuries and Diseases CoveredInjury must be caused by accident arising out of and in the course of employmentDisease must be covered by the statute as one that normally results from the nature of the employment and exposure to the disease must arise from employmentCommon Features of Compensation LawsBenefits ProvidedIndemnity payments for time lost from work60-75% of wagesTax freeMaximum set by statePayment for medical servicesUnlimitedNo deductibles or coinsuranceRehabilitation servicesDeath benefitsCommon Features of Compensation LawsMethods of Financing BenefitsPrivate insuranceInsurance through assigned risk plansInsurance through state fundsQualified “self-insurance” plansExcess insuranceProcedure for Obtaining BenefitsNotification requirementsAdministrationCourtsSpecial commissionThird-Party ClaimsApplies when employee eligible for WC benefits was injured by the tort of a third partyEmployee has three choices:1 Sue the third partyCan file for WC benefits if unsuccessful2 Accept WC benefitEmployer is subrogated to rights of employee against third party to extent of WC benefits3 Accept WC benefit and sue third partyEmployer has lien on proceeds of recovery to extent of WC benefitsFederal Compensation LawsFederal Employers’ Liability Act (1908)Applies to employees of interstate railroadsEliminates traditional employer defenses in suits by employees Longshore and Harbor Workers’ Compensation ActProvides more generous WC benefits to maritime workers (loading, repairing, building vessels) Jones Act (1920)Extends FELA to crew members Migrant and Seasonal Agricultural Worker Protection