In this video, I cover workers' compensation as covered on the CPA exam.
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Workers' compensation programs, operated at the state level, are intended to assist employees in obtaining compensation for injuries sustained during their employment. In the majority of states, participation in these programs is mandatory for employers. Under these programs, employers are held liable for employee injuries regardless of who was at fault. The critical criterion for a claim is that the employee's injury must have happened while they were performing their job-related duties.


State-Run Programs: Workers' compensation is managed by individual states, meaning each state has its own set of rules and regulations governing the program.

Aimed at Employee Recovery: The primary goal of these programs is to help employees recover from injuries they suffer while on the job. This includes providing financial compensation for medical expenses, lost wages, and rehabilitation costs.

Compulsory Coverage: In most states, employers are required by law to have workers' compensation insurance. This ensures that there is financial support available for employees who get injured.

Strict Liability of Employers: Employers are responsible for covering the cost of injuries regardless of who was at fault. This principle of strict liability means that an employee doesn't need to prove that the employer was negligent in order to receive compensation.

Scope of Employment: For an injury to be covered under workers' compensation, it must occur in the course of employment. This means the employee was doing something related to their job when the injury occurred. For example, an injury sustained while an employee is working at their desk or operating machinery on a factory floor would typically be covered.

In summary, workers' compensation programs are designed to provide a safety net for employees who suffer job-related injuries, ensuring that they receive necessary financial support without the need for a lengthy legal process to determine fault.



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