How does worker’s compensation work?

Last updated on June 12th, 2022 at 08:45 pm

Workers Compensation is a system of no-fault insurance that provides wage replacement and medical benefits to employees for injuries or diseases related to the workplace.

Most Wisconsin employers are required to carry worker’s compensation insurance under the Wisconsin Worker’s Compensation Act. According to the Department of Workforce Development, an employer is required to carry worker’s compensation insurance when:
1) The employer usually employs three or more persons full-time or part-time.
2) The employer has one or more full-time or part-time employees and has paid wages of $500 or more in a quarter for work done in Wisconsin.
3) A farmer who employs six or more employees on the same day for 20 days during a calendar year. Some relatives of the farmer do not count as employees.

Wisconsin statute requires that every employer subject to the Worker’s Compensation Act provide concrete means to pay benefits to its employees in the event they are injured. Most employers in Wisconsin provide this security by purchasing an insurance policy from a private insurance company. The insurance company then reports to the State of Wisconsin Department of Workforce Development (DWD) that it is providing coverage for the employer. Some employers, however, are self-insured. Employees who get injured at a workplace may hire a workers comp attorney to ensure their rights are protected and that they receive a fair compensation.

The cost of insurance will vary depending on how hazardous jobs in your industry are, based on claims histories of 650 separate industries kept by the Wisconsin Compensation Rating Bureau.

All positions within an industry classification are treated the same under this system, with only a few exceptions. Three occupations are so common in various industries that special classifications have been established for them – clerical office employees, outside sales people and drivers.
Oct. 12, 2001 Small Business Times, Milwaukee

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