Rising Concerns Facing Employers With Workers Compensation Issues

One of the principal challenges with workers compensation insurance is that its based on each state determining its own laws

. For example, an exotic dancer, who was injured while working at a club in South Carolina, did not receive any benefits because she was judged to be an independent contractor and not an employee. However, in Boston, a suit brought against a nightclub was filed and the workers were deemed to be employees and entitled to damages. They performed the same type of activity as the former dancer, but the result was different. As in many legal cases, these decisions are appealed and payments are generally made a few years later.

In todays business climate another concern relating to this compensation program is the premise that many injured employees feel no compulsion to return to work. Many instead prefer to continue their rehabilitation and continue to receive benefits. Due to the economic conditions in this country, an employee feels safe by not returning to work as soon as he or she is able, knowing the employer is holding a position for them.

More employees suffering from work-related stress

In addition to any physical injuries suffered, a new issue now being treated is known as employee stress. The fear of layoffs or terminations has given rise to employment insecurity. Others factors leading up to this condition are the fear of reprimands and warnings of poor job performance prior to the injury. The stress of receiving a demotion instead of a promotion can weigh heavily upon the worker and hinder his or her desire to return to work.

However, from an employers point of view, it is difficult to place these employees on a standby position while they are laying others off. In many cases after an employee returns back to the workforce, he might be laid off for other reasons that have no connection to the injury.

Obesity among workers another financial issue

Another factor contributing to the slower rate of the injured employee returning to work is the rise of obese workers. The obese worker is likely to miss more days than their healthy counterparts with the same types of injuries. The medical costs in their cases are much higher and they are liable, in some instances, to become permanently disabled.

In some cases, in order to properly treat the patient, weight loss programs or even surgery has been suggested. This tends to create a serious situation, wherein the insurer will then be responsible for the costs for the bypass surgery and any other attendant medical complications.

by: Roger R. Minnick

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