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Workers' Compensation Acts

n. state statutes which establish liability of employers for injuries to workers while on the job or illnesses due to the employment, and requiring insurance to protect the workers. Worker's compensation is not based on negligence of the employer, but is absolute liability for medical coverage, a percentage of lost wages or salary, costs of rehabilitation and retraining, and payment for any permanent injury (usually based on an evaluation of limitation). Worker's' Compensation Acts provide for a system of hearings and quasi-judicial determinations by administrative law judges and appeal boards. However, if worker's' compensation is granted, it becomes the only remedy against an employer and does not include general damages for pain and suffering. Thus, an injured worker may waive workers' compensation and sue the employer for damages caused by the employer's negligence. If a third party contributed to the damages, the injured worker may sue that party for damages even though he/she receives worker's' compensation, but recovery may be subject to a lien for moneys paid out by the workers' compensation insurance company.


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