2020 Analysis of Workers' Compensation Laws - 96

PART 3-ADMINISTRATION OF LAWS
Because workers' compensation grew out of a public
dissatisfaction with the manner in which job-related
disabilities were handled, it is not surprising that the system
was designed with an eye toward prompt and effective
disposition of disability cases. Without an effective delivery
system, many of the problems associated with the commonlaw and employer liability statutes would remain.
This requirement for an effective delivery system remains
valid today. The National Commission on State Workmen's
Compensation Laws, in listing this as a major objective
for a modern workers' compensation system, made special
note that the achievement of the system's objectives for
protecting against workplace disabilities was dependent on
an effective system for delivery of benefits and services. This
observation was reaffirmed by a second federal report on
workers' compensation delivery in 1977, which emphasized
the importance of efficient program administration.
As originally envisioned, the system would be selfadministering. However, over time, the complexities of
the system proved too much for a laissez-faire approach,
and states moved to take a more affirmative role in the
administration of their laws.
Generally, states moved to administer their laws either
through their court system, a special commission or board,
or a combination of both. In Canada, administrative
activities are carried out by a board. The principal areas of
administration include:
* Supervision of compliance with statutory requirements
for employers, employees, carriers, and medical and
legal personnel.
* Investigation and decision on disputed claims and the
supervision of medical and vocational rehabilitation.
* Management of second injury funds and special
assessment requirements.
* Collection of data and evaluation of program
performance.

Administration: Notice to Employer and Claims
(Chart XI)
Workers' compensation laws generally are administered by
commissions or boards created by law. A few states provide
for court administration.

Chart XI shows statutory provisions relating to
administration. These include:
* Time limits in which employers must be advised of
injury.
* Time in which claims must be filed.
* Claim settlement conditions.
* Regulation of attorney's fees.

Employer's Report of Accidents (Chart XII)
All employers are interested in requirements legally imposed
on them to report injuries and the penalty, if any, imposed
for failure to report. In many jurisdictions, except for
preliminary reports, the insurer relieves an employer of this
burden. Provisions for employer reporting of accidents are
summarized in Chart XII.

Second Injury Funds (Chart XIII)
Second injury funds (or similar arrangements) were
developed to meet problems arising when a preexisting
injury combines with a second injury to produce a disability
greater than that caused by the latter alone. The funds
encourage hiring of the physically handicapped and allocate
costs of providing benefits to such employees more equitably.
Second injury employers pay compensation related to the
disability caused by the second injury alone, even though
the employee receives a benefit relating to the combined
disability; the difference is made up from a second injury
fund.
Where no special second injury fund is provided by law,
an employer in whose employment a second injury is
sustained usually is liable for compensation due for the total
resulting disability. Because of the potential increased cost
of compensation benefits, an employer may be influenced
to refuse employment to handicapped persons. It is for this
reason that second injury funds are advocated.
Most compensation laws now limit employer liability in
second injury cases to payment for the disability resulting
from the second injury considered by itself, as shown in
Chart XIII. The chart indicates the nature of the injury
covered, the portion payable by the employer and by the
fund, and the sources for the fund.

96 | 2020 Analysis of Workers' Compensation Laws

2020 Analysis of Workers' Compensation Laws

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