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Workers Compensation laws are designed to ensure that employees who are injured or disabled on the job are provided with fixed monetary awards, eliminating the need for litigation. These laws also provide benefits for dependents of those workers who are killed because of work-related accidents or illnesses. Some laws also protect employers and fellow workers by limiting the amount an injured employee can recover from an employer and by eliminating the liability of co-workers in most accidents. State Workers Compensation statutes establish this framework for most employment. Federal statutes are limited to federal employees or those workers employed in some significant aspect of interstate commerce.

The Illinois Workers Compensation act provides an example of a comprehensive state compensation program. It is applicable to most employers. Illinois law requires employers to provide workers’ compensation coverage for their employees. Almost everyone who is hired, injured, or whose employment is localized in Illinois is covered by the law and should be insured by his or her employer. Sole proprietors, business partners, and members of limited liability companies may exempt themselves.

Types of Workers Compensation Acts enacted by the United States Congress:

• Federal Employment Liability Act (FELA)
• Federal Jones Act
• Longshore and Harbor Worker Compensation Act (LHWCA)
• Black Lung Benefit Act

The Federal Employment Compensation Act provides workers compensation for non-military, federal employees. Many of its provisions are typical of most worker comp laws. Awards are limited to “disability or death” sustained while in the performance of the employee’s duties but not caused willfully by the employee or by intoxication. The act covers medical expenses due to the disability and may require the employee to undergo job retraining. A disabled employee receives two thirds of his or her normal monthly salary during the disability and may receive more for permanent physical injuries, or if he or she has dependents. The act provides compensation for survivors of employees who are killed. The act is administered by the Office of Workers’ Compensation Programs.