Workers' Compensation Acts Definition

State statutes that 1) require employers to purchase insurance to protect their workers and 2) establish the liability of employers for injuries to workers while on the job or illnesses due to the employment. Workers' compensation is not based on the negligence of the employer; benefits are granted regardless of fault and include medical coverage, a percentage of lost wages, costs of retraining, and compensation for any permanent injury. Coverage does not include general damages for pain and suffering.