In California, workers' compensation is broken down into specific categories. Different benefits are paid by the workers' compensation policy purchased by your employer. Your employer must carry this policy for every employee they have on their payroll. This coverage is designed to take care of an employee's financial needs if they are injured while on the job.
Workers' compensation benefits are used to pay for any medical treatment an employee needs to recover from a work-related injury. This includes all types of treatment ranging from check-ups to surgical procedures and long-term care if required. An independent medical examiner (IME) will determine what type of treatment is necessary. For many, physical therapy is an essential part of the healing process because it allows you to regain your strength and return to your everyday life.
Temporary disability benefits pay for the loss of wages for a short period. For example, an employee may only be absent from work for a few days for minor injuries. This benefit is approximately 2/3rd of an employee's actual weekly wage and will end after 104 weeks. Temporary disability benefits may also come into play if an employee cannot return to their original job but can work in another capacity. Supplemental job displacement benefits will be provided if the employee wants to move to a position where they can be more productive.
Permanent disability benefits are paid to an employee who has experienced a permanent loss of function and is not physically capable of returning to work. To receive endless disability benefits, an employee's injuries must be so severe that they cannot return to work in any capacity. The maximum payout per week for permanent disability is $290. Benefits are determined by how much loss of function the employees have experienced.
If an injured worker can work in any capacity, they may be offered the opportunity to receive additional training. The training they receive will allow them to return to work to function as efficiently as possible. Sustainable job placement benefits are used to pay for training an employee to return to work. A sum of up to $6,000 will be offered to assist the employee in gaining the training they need to work in another position.
If disability payments or workers' compensation benefits are not paid on time, the penalty can be 1/4th the amount of the original price. When payments are late, the employee is entitled to a late fee. The insurance company must then pay the penalty along with the other benefits they are already receiving. Payments are considered late if they are not paid within 14 days of their original due date.
Workers' comp insurance is valuable for both employers and employees. It protects the employers against costly employee-related lawsuits and claims while also covering the expenses incurred by the employees as a result of an injury/illness.
At Little & Sons Insurance Services, we understand that accidents are inevitable despite your best efforts to maintain a safe workplace. Therefore, we make sure that both your business and your employees are covered at all times with the right workers' comp coverage. Contact us today to learn more.
