Are You Eligible for Workers' Compensation Benefits?
Workers' Compensation is a form of insurance offered by many employers. It covers employee wages and medical benefits if they are injured or become ill while on the job. In exchange, the employee cannot sue the employer for negligence except in certain circumstances. As an employee, you may be eligible for Workers' Compensation benefits in several instances.
Workers' Compensation Eligibility Requirements
There are usually three basic requirements an employee must meet before he or she can be eligible for Workers' Comp.
- The company for whom you work must carry Workers' Compensation insurance or be required by law to do so.
State laws vary, and your employer may be exempt from carrying Workers' Compensation insurance depending on the number of employees, business type and type of work employees perform. Examples of companies that may be exempt include those that employ fewer than three people and certain charities.
- You must be a legitimate employee.
In most cases, independent contractors and volunteers are not eligible for Workers' Comp benefits. Consultants, freelancers and other independent workers are examples of ineligible employees. Check your classification as an employee to be sure you are eligible for Workers' Comp.
- The injury or illness must be work-related.
Hurt your back while lifting boxes at work, develop carpal tunnel because you type reports or become ill after you're exposed to hazardous chemicals, and Workers' Compensation should cover your medical treatment. You may even be covered if you trip on the sidewalk while picking up sandwiches for your boss or if you injure your knee while playing softball for your work team. However, injuries or illnesses that occur when you're off the clock or performing duties that aren't related to your job will not be covered by Workers' Compensation.
Special Rules for Certain Workers
Certain employees may fall into special categories that make them ineligible for Workers' Comp. Those employees include:
- Domestic workers in your home, including housekeepers, landscape specialists and babysitters
- Casual or seasonal workers who work intermittently, sporadically or only during certain times of the year
- Agricultural and farm workers
- Leased or loaned workers: Depending on where you live, you may be covered by the Workers' Comp laws of the state in which your employing agency resides or the state in which you do the work.
- Undocumented workers: Nearly a dozen states cover undocumented workers with Workers' Compensation. Several do not provide coverage, and additional states are undecided. If you employ undocumented workers or are one, check local laws to verify your Workers' Compensation eligibility.
Workers' Compensation is important coverage. Find out today, before you get hurt or become ill, if you meet eligibility guidelines.