The Department of Labor & Industrial Relations states that it receives approximately 100,000 injury reports every year. The average claim is worth at least a few thousand dollars, and some of these claims are worth hundreds of thousands. In other words, these claims represent a major cost. But who pays for workers’ compensation benefits in Missouri? Where does this money come from? Workers may feel some sense of concern or even guilt when pursuing compensation for their injuries – knowing that the money is undoubtedly coming out of someone else’s pocket. A conversation with an experienced workers’ compensation lawyer in Missouri may help address these concerns. Consider dialing (573) 341-8336 to continue the discussion with Steelman Gaunt Crowley.
The Division of Workers’ Compensation Is Administered by the Department of Labor and Industrial Relations
Aside from the actual money that injured employees receive, the workers’ compensation program also requires funding to function properly. Records show that many people working for this program earn over $100,000 per year. The program also requires funding for administrative needs, its seven offices, and so on. The division of workers’ compensation is part of the Department of Labor and Industrial Relations (DOL). In turn, the DOL receives its funding from taxpayers in Missouri and throughout the nation. That being said, many DOL programs (including unemployment benefits) are funded solely by taxes on employers. When an employee files a workers’ compensation claim, they experience services and interact with government employees paid for by taxation. However, this only applies to the administration of the workers’ compensation program – and not the compensation itself.
Employers and Private Insurers Pay for Workers’ Compensation
Workers wondering who pays for workers’ compensation do not need to worry about being a burden on the American taxpayer. The compensation an injured worker receives comes from the private sector. Each employer in the United States is required by law to pay for workers’ compensation insurance. As long as the employer has five or more employees, they must obtain and maintain workers’ compensation insurance. If they fail to do this, they may face consequences for violating federal and state labor laws. According to the Department of Labor, construction companies need to obtain workers’ compensation insurance even if they have a single employee.
Each month, the employer pays insurance premiums to a private provider of workers’ compensation insurance. According to the Department of Labor, these private insurers must be approved by the Department of Commerce and Insurance (DCI). An insurance company is only profitable if the value of their received premiums is higher than their insurance payouts. Therefore, employers in Missouri pay for workers’ compensation settlements – even if the actual payouts come from insurance companies. That being said, there could be a situation in which an employer pays only a few months of premiums before receiving a major claim from one of their workers. In this case, the private insurer would end up paying a greater share of the payout than the worker.
Does Filing a Workers’ Comp Claim Make My Employer’s Premiums Go Up?
The more workers’ compensation claims an employer has on their record, the higher their premiums become. In other words, the employer “pays” for each claim by accepting increasingly high premiums. This increases the cost of doing business, especially in fields that are particularly dangerous. If the cost of doing business becomes too high, the employer may need to dissolve their company or fire workers. This is why many employers attempt to discourage their employees from filing claims. Some also interfere with the claims process, hoping to keep their premiums low. Workers who experience this misconduct should speak with an experienced workers’ compensation lawyer at Steelman Gaunt Crowley.
Even if a claim might increase premiums for an employer, employees should not feel guilty about moving forward with this process. Every American employee has the right to file a workers’ compensation claim – and exercising this right could be crucial when covering medical costs and lost earnings. This is particularly true when injured workers need to support dependents such as young children or seniors. In addition, workers should remember that they are probably prohibited from filing direct lawsuits against their employers. In other words, a workers’ compensation claim usually represents the only option for injured employees. Finally, workers should remember that the government is the entity that mandates the workers’ compensation system. Employers have no choice but to comply with this system, and employees have no control over it.
Injured Workers and Families Pay the True Cost
Those who wonder who pays for workers’ compensation should remember that it is not all about money. One might argue that an injured worker always bears the true cost of a serious accident – regardless of how much money they receive. These employees may need to abandon once-beloved hobbies like sports, hiking, or walking their dogs. Many workers lose the ability to walk, speak, or carry out basic daily tasks. Despite struggling with depression and other psychological disorders, employees cannot pursue additional compensation for non-economic damages through the workers’ compensation program. In contrast, an employer simply pays a higher premium and continues with life as if nothing happened. No amount of money can ever turn back time and stop a life-altering workplace accident from occurring.
The families of injured or deceased workers also bear these burdens. After a fatal workplace accident, a family might receive considerable financial support in the form of death benefits. However, the loss of a loved one is never worth this cost.
Discuss Potential Compensation With Steelman Gaunt Crowley
Employees may have numerous questions after suffering injuries at their workplaces. The question of who pays for workers’ compensation benefits is only one example of a valid concern. Employees may also wonder how long they must wait before receiving compensation, how much money they will receive, and what to do about a denied claim. Although employees may be able to answer some of these questions through online research, it is important to understand that each workers’ comp claim is slightly different. As a result, online research may fail to provide information that applies to each unique situation. An injured employee may prefer to have a more detailed discussion about their situation with an experienced workers’ compensation lawyer in Missouri. To begin this discussion, consider contacting Steelman Gaunt Crowley at (573) 341-8336.
