Workers’ compensation, commonly known as "workers’ comp," is a government-mandated program designed to provide benefits to employees who sustain injuries or illnesses directly related to their job duties. It functions as a form of disability insurance, offering cash and healthcare benefits to affected workers.
In the United States, workers’ compensation is primarily managed at the state level, resulting in varying requirements and benefits across different states. Notably, Texas stands out as the sole state where employers are not obligated to carry workers’ compensation insurance.
Workers’ compensation benefits encompass partial wage replacement for the duration of disability, along with coverage for medical treatments and rehabilitation services. Most states administer their workers’ compensation programs through private insurers, funded by premiums paid by employers. Each state operates a Workers’ Compensation Board or similar agency to oversee the program and resolve disputes. State regulations dictate the specifics of workers’ compensation coverage, including eligibility criteria and exceptions.
