1/14/08
Introduction to Workers’ Compensation Law
Tort Law vs. Workers Comp
W.C. blend of tort law & social service
Like tort law in that there is a liable party who is responsible for paying benefits.
Unlike tort law, the liability is not premised on fault or blame
Right to benefits is based on concept of providing support & preventing destitution of an employer
No concepts such as assumptions of risk, contributory negligence, etc.
6 Key Distinctions:
Test of Liability – Workers comp, the right to benefits – test of liability is easy,
Was there a work connected injury?
Underlying Social Philosophy
Tort: settle dispute among 2, compensate, punish, deter, make 1 whole
Workers Comp: to set up a system in which victims of workplace injuries can be exposed to the most efficient, most dignified, most certain method for being compensated. And to ensure that the cost for providing that system goes to the right place.
Defenses
Very few in workers comp
Nature of Injuries
Not every injury that someone may sustain in workplace may be compensated by workers comp.
Certain types of injuries are excluded by workers comp.
Elements of damages compensated
Certain elements that you could recover in a tort case that you will never get in workers comp case because what you get in workers comp case must be in the book.
Don’t have stuff like damage to family, etc,
Amounts of Compensation available.
Even when an element of damages exists in both tort & workers comp, the amount of damages is not the same.
Ex. Injured & out of work for 6 weeks. Would have earned $6,000. Under tort law you would get it all. Most workers comp laws only entitle you to a percentage.
MD was 1st state to draft workers comp law; which was held unconstitutional.
Nature of
Allow for compensation immediately given to employee
Prevents suits against employer after settlement
“Great handshake” – compromise, employers & insurers walking away with something.
8 Common Factors Seen in Workers Comp Statutes
Basic Operating principle, condition of liability is usually an occupational disease or accidental personal injury arising out of & in course of work
Concepts of negligence & fault are immaterial
Coverage is limited to 1 relationship: employer/employee relationship
There’s a benefit system which provides for medical & lost wage & permanent disability. But it doesn’t make the injured worker whole like in torts
Employers usually get as part of the deal, the protection known as Exclusivity of Remedy. In return for all they give, the employee gives up right to sue the employer outside of system (in tort law)
Typically the employee does retain right to sue someone else other than employer who may have caused their injuries.
Most statutes have a system that defines how right to benefits is litigated & how they are administered. System of administration
All states have a system in place where insurance or coverage of workers comp is mandatory.
1/28/08
Basic Features of Workers’ Compensation Law, Maryland Act
Construction of the Article
Rule of strict construction of laws replacing common law, doesn’t apply to workers comp.
When dealing with an ambiguity regarding law under workers comp. statute, the statute is to be interpreted liberally so as to effectuate it’s judicial purpose. (interpreted in favor of injured worker) But doesn’t mean liberal construction of facts, but liberal construction of the law.
In statute, there are certain pr
. Law)
b. Federal Employees Compensation Act: if you are a federal worker, you must file under this Act, not the state you are in
2) 5 Factors (need all 5; if you don’t have them all & accident happened in MD, filed under MD law)
i. Employee & employer are not residents of MD
ii. Contract of hire was entered into in a state other than MD;
iii. Injury occurred while the worker was working in MD on a temporary or intermittent basis;
iv. The non-resident employer has workers comp insurance that covers the injured worker in another state while they are working in MD; &
v. The other state where there is jurisdiction has a reciprocal provision covering/exempting MD employers & employees from their act under similar circumstances.
