Workers’ compensation is an insurance that provides cash benefits and/or medical care for workers who are injured or become ill as a direct result of their job. The cost of the insurance must be paid entirely by the employer, no amount can be charged to employees.
Under a workers’ compensation policy, employees are compensated for work-incurred illnesses or injuries, regardless of fault. In exchange, the employees are unable to sue the employer or company for any possible negligence.
The workers’ compensation system was born out of a New York state tragedy: the worst factory fire in New York City’s history, at the Triangle Shirtwaist Factory in 1911. Today, the state upholds strict requirements for employers. All New York businesses with employees (full- or part-time) must carry workers’ compensation insurance.
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