Worker's Compensation

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Worker's Compensation

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An insurance plan that employers are required to have to cover employees who get sick or injured on the job.

♦ It provides wage replacement and medical benefits to employees injured in the course of employment.

Requirements vary depending upon the state. Some states require employers with even one employee to carry workers compensation insurance coverage, while other states specify more than five employees.

♦ Some states exempt certain categories of workers, such as agricultural employees, seasonal employees, domestic employees, and independent contractors, from their workers' compensation systems.