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Test your Workers’ Compensation knowledge: Answers

  1. True. Workers’ compensation is an insurance system that pays monetary benefits, specifically, medical expenses, lost wages, and ongoing care costs for injured workers.
  2. False. Most workers are eligible for workers’ compensation, but all states exclude some workers. Exclusions often include business owners, independent contractors, domestic employees in private homes, and farm workers.
  3. True. Even though employees are covered by workers’ compensation whether or not they were following company policy, some states reduce compensation if an employee was on drugs or alcohol at the time of an accident or was not following established safety rules.
  4. True. Workers can sue third parties to obtain compensation in addition to that provided by workers’ compensation. Employees can also pursue certain penalty claims through the WC system and compensation through EEOC or state agencies responsible for enforcing anti-discrimination laws.