Each U.S. state (and the federal government) has a workers’ compensation program that provides benefits to employees who suffer job-related injuries and illnesses.
While the federal government administers a workers’ comp program for federal and certain other types of employees, each state has its own laws and enforcement of workers’ compensation programs. For example, the workers compensation program in Texas is enforced by the state Department of Insurance. Its enforcement actions provide insight into typical violations of state workers’ compensation laws.
Recordkeeping and Reporting Violations Lead Offenses
More than one-third of all workers’ compensation violations related to record-keeping and reporting — including employers, insurance carriers, and physicians and medical services.
Payment delays or discrepancies were the second leading category of violations.
Most common examples of employer violations included failure to:
- File and/or accurately complete forms, reports or records
- File wage statement with injured employees
- Pay income or indemnity benefits to injured employees in a timely manner
- Pay correct amount of income benefits to injured workers
- Provide Agency with requested information about workers’ compensation
Fines for Workers’ Comp Violations
Covering a range of violations for employers, physicians /medical services, and insurance companies, fines for a worker’s compensation violation averaged $7,400. Employers’ fines averaged only $3,000 per offense; however, in 43% of the violations, insurance carriers were found at fault. Fines leveled at insurance companies averaged more than $12,000 per violation.
Payment violations lead all categories for total fine amount. Insurance carriers are liable for these fines for cases where they have failed to pay income benefits or medical bill reimbursement to injured employees in a timely manner.
Learn More: Posting Requirements
Are you an employer wondering what you need to display in the workplace to stay compliant with worker’s compensation posting requirements?
Every state requires a workers’ compensation postings, but not all states have the same posting requirements. You can learn which workers’ comp postings and unemployment insurance postings are required for your state here.