Workers’ compensation is a publicly sponsored system that pays monetary benefits to workers who become injured or disabled in the course of their employment. Workers’ compensation is a type of insurance that offers employees compensation for injuries or disabilities sustained as a result of their employment.
By agreeing to receive workers’ compensation, workers also agree to give up their right to sue their employer for negligence. This “compensation bargain” is intended to protect both workers and employers. Workers typically give up further recourse in exchange for guaranteed compensation, while employers consent to a certain amount of liability while avoiding potentially greater damage of a large-scale negligence lawsuit. All parties (including taxpayers) benefit from avoiding the legal fees needed to process a trial.