What are the Myths Associated with Workers’ Compensation Law?

As an employer, when you provide workers’ compensation, it actually shields you against the litigation followed if an employee gets sick on the job. Every employer needs to get a workers’ compensation insurance by an insurer or the state or the business can opt to be half insured. The cost tends to vary from place to place. And you can also increase or decrease on the premium amounts on the basis of the number of files claimed. Get acquainted with the myths associated with the workers’ compensation law.

  1. Once the workers compensation has been paid accordingly, the employer is now set free from all responsibilities.

By staying in constant touch with the employees during the recovery phase, employers tend to predict when the employee will return to work. Implement a return to work program to assist in reducing the number of days lost in the illness or injury to contribute to increase in productivity. It also helps in increasing workers comp and disability insurance.

  1. Only huge businesses are needed to apply for workers compensation insurance

Laws tend to vary according to the state, but in many businesses only one employee needs to meet the requirement for the workers comp. The coverage requirements are also determined on the basis of type of business. Visit this site to check California workers comp settlement chart.

  1. Workers compensation fraud is common.

The media tends to evoke these claims by the insurance providers, researchers claim that only a mere or two percentage of these claims are fraudulent in nature. The insurance industry predicts that the fraudulent claims tend to cost companies at least 5 billion USD on an annual basis in the year of 2000! So, try to buy less into the media.

  1. Have your employees fill out 1099 forms to avoid paying workers compensation.

Many businesses believe that when they have their employees fill the 1099 forms, they are deemed as independent contractors and need no coverage. However, you need to know that there are many more requirements to be met to be deemed as an independent contractor. And if the IRS people discover something fishy, you can be charged with tax penalties and many cases by held criminally liable.


Workers are compensated for an injury that occurred at work, even if it was partially their fault.

While the workers don’t have the freedom to hurt themselves on purpose to make most of the benefits, if the injury is associated with something of on the job nature, even if they have been careless, then they are compensated.

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