Employees need to be assured that if they are injured on the job, their medical benefits will be taken care of and they will receive some income continuation while they are unable to work.
The workers’ compensation program covers job-related injuries and illnesses. Income replacement benefits are provided—at the employer’s expense—for disabilities that are temporary or permanent, partial or total. Benefits are also provided to surviving dependents in the case of job-related deaths. In addition, full medical care and, to a limited extent, vocational rehabilitation are covered.
The benefit to the employer is that employees who are injured must turn to the workers’ compensation system as their exclusive means of redress. Employees covered by workers’ compensation do not have the legal right to sue a negligent employer in court for punitive damages.