Leaves of Absence – Part 3 – Workers’ Compensation

Have you ever wondered about workers' compensation and how it impacts your business and employees? If yes, you’re in the right place! Workers’ compensation is a no-fault insurance system that provides benefits to employees who suffer from work-related illness or injuries. As an employer, you are responsible for maintaining workers’ compensation coverage.  

An injury is deemed to be job-related when it arises out of employment based on the risks present and when it occurs in the course of employment, while the employee is performing work. In short and simple terms, if they are on the clock and injured, this will likely be covered under workers’ compensation!

You are liable for an employee's medical costs, permanent incapacity, and any long-term effects of an injury sustained at work if the employee is hurt on the job. It is noteworthy that covered injuries in California are not limited to bodily harm. Under workers' compensation, emotional injuries brought on by stress or trauma related to one's job are also covered.

Employee coverage, unless otherwise specified by the Labor Code, begins the moment they start working for you. You must provide a written notice of workers' compensation rights to your employees. This includes posting an educational poster in a prominent place and providing each new hire with a workers' compensation rights and benefits pamphlet at time of hire. 

 In addition to workers' compensation benefits, if an employee is injured on the job and you are a covered employer, your employee may also be eligible for leave under the California Family Rights Act (CFRA) or the federal Family and Medical Leave Act (FMLA). These laws provide job-protected leave to eligible employees who need time off for their serious health condition or to care for a family member with a serious health condition.

 As an employer, you must understand your compliance obligations. If you have any questions or concerns, don't hesitate to reach out to one of our HR Consultants. Check back next week as we'll be discussing personal leaves of absence.