The US understands that the health of its economy hinges on the performance of its workforce. It is for this reason that the nation has enacted laws designed to safeguard the wellbeing of employees. Worker’s compensation law is among those that seek to insulate employees against harm. While this law secures the wellbeing of employees, it also presents negative outcomes for employers.
One of the benefits of worker’s compensation law is that is enhances employee wellbeing. Thanks to this law, employers are mandated to restore the health of employees when they sustain injuries while executing their mandate. Both the employer and the employee benefit. While the employee enjoys guaranteed protection against injury, the employer is spared of the losses that result when employees are incapacitated as a result of workplace injury (Jennings, 2017). Another benefit of the worker’s compensation law is that it shields employers against the threat of legal action. There have been cases where employees have successfully sued their employers for failing to provide safe working conditions. The fact that it enables employers to attend to the needs of their employees’ dependents in the event of death is another advantage of workplace compensation law (Posthuma, 2009). For example, the family of a man who dies while working can be guaranteed regular income thanks to this law.
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Whereas it is true that workplace compensation law presents numerous benefits, there are a number of disadvantages of which employers need to be wary. The high cost of complying with this law is one of the disadvantages. Estimates show that for March 2015, the cost of workplace compensation for firms in such industries as construction and natural resources stood at $1.02 for every hour that employees worked (Brandly, 2016). This figure should remind employers that as they comply with worker’s compensation law, they will incur high costs. The high costs that employers incur cannot be ignored. However, the employers should understand that the costs are outweighed by the many benefits of creating worker’s compensation programs. Therefore, as part of their efforts to create a safe workplace and enhance employee productivity, employers should endeavor to comply fully with the provisions of worker’s compensation law.
References
Brandly, C. (2016). Workplace injuries and illnesses and employer costs for worker’s compensation. U.S. Bureau of Labor Statistics. Retrieved November 27, 2018 from https://www.bls.gov/spotlight/2016/workplace-injuries-and-illnesses-and-employer-costs-for-workers-compensation/pdf/workplace-injuries-and-illnesses-and-employer-costs-for-workers-compensation.pdf
Jennings, M. (2017). Business: its legal, ethical, and global environment. 11 th Edition. Boston: Cengage Learning.
Posthuma, R. A. (2009). Worker’s compensation. Society for Human Resource Management. Retrieved November 27, 2018 from https://www.shrm.org/academicinitiatives/universities/teachingresources/Documents/Workers%27%20Comp%20IM%20Final.pdf
