Employers may obtain WC protection through commercial insurance, individual or group self-insurance, state pools, or direct state funding depending on the regulations in their state. Workers’ Compensation is based on a balance between the needs of both employers and employees. It is meant to be a no-fault, non-adversarial system. Labor gives up the right to sue and management gives up the right to defend against claims. Employees are covered by workers’ compensation whether or not they were following company policy at the time they were injured on the job. At the same time, even if an injury or illness is due to employer negligence the employer cannot be sued. Some states do reduce compensation if an employee is on drugs or alcohol at the time of an accident.