What’s the History Behind Workers’ Compensation?

There is a risk of injury with any type of job. Whether you’re working in construction or an office, you can be injured by lifting a heavy object, repetitive movement, or even an infected paper cut.

If you do sustain an injury while working, the workers’ compensation insurance program is in place to cover your medical expenses and lost wages. These are the kinds of benefits that most employees are aware of but have fortunately never had to use.

Your company’s workers’ compensation program is paid entirely by your employer. In exchange, when you accept those benefits, you aren’t entitled to sue your employer for damages. This is commonly referred to as “the compensation bargain.” Although the program is designed to provide support for any worker injured on the job, it is not guaranteed.

Do you know the history behind workers’ compensation? It is all about fairness.

Worker’s Accident Insurance

In the 1600s, famed pirate Captain Morgan established a payment program for his crew members. If you lost an arm, you could get 600 pieces of eight or 500 pieces of eight for a lost leg. The only stipulation was that you had to be well enough to return to “work” to collect your compensation.

Flash forward to 1884 and the Workers’ Accident Insurance program, instituted by Prussian ruler Otto von Bismarck. The program was put into place to keep workers from suing their employers every time they were injured on the job. As long as the medical bills were paid and the worker recovered, the company was off the hook.

This was an insurance policy that quickly caught on and was implemented across Europe.

The Industrial Revolution Defense

Meanwhile, in America, the Industrial Revolution was in full swing, and so were workplace injuries.

Workers’ compensation seems like a no-brainer. After all, why wouldn’t an employer want to help their worker get back on the job? It wasn’t always the case. As injury rates skyrocketed, the court system was overwhelmed by workers who sued their employers.

However, the companies were united in their defense. These are the tactics they deployed:

Contributory Negligence

Under this concept, the worker is responsible for their own injury. It doesn’t matter if they are working in a hazardous environment on dangerous equipment. If the employee gets hurt, it is their fault.

Assumption of Risk

When an employee accepts a job, they accept the risk that comes with the work. By extension, accepting that contract also means they relinquished their right to sue if they got injured.

The Fellow Servant Rule

If a worker was injured because of a coworker’s actions, the company should not be held responsible.

What made matters worse was that most workers didn’t have the means to file a lawsuit. If they were injured on the job, they most likely lost that job and faced unemployment.

In 1906, writer Upton Sinclair’s novel “The Jungle” detailed the inhumane working conditions found in Chicago’s slaughterhouses. The public took notice, and so did the government.

FELA Begins

Between 1889 and 1909, several states tried to pass their own version of a workers’ compensation act but failed. Congress stepped up and passed the Federal Employers’ Liability Acts (FELA) of 1906 and 1908. While this was a good start, it only applied to government workers.

Wisconsin became the first state to pass an all-inclusive workers’ compensation policy. It wouldn’t be until 1948 that every state passed its own version of the workers’ compensation program that covered all employees.

In Maryland, the Workers’ Compensation Commission oversees the state’s workers’ compensation program. The basis of workers’ compensation is that an injured worker will receive medical benefits and a portion of their missed salary regardless of how the injury happened and who was at fault.

As long as the incident occurs while the employee is on the job, they will be compensated.

Great Program, But Not Guaranteed

Each year, millions of workers across the country tap into the workers’ compensation program to help with a workplace injury. Every workers’ compensation claim goes through a review process. If you are denied a claim, you have the right to appeal the decision and present your case to a review board.

Fortunately, you can get support from an experienced Baltimore workers’ compensation lawyer like you’ll find at Belsky & Horowitz, LLC.

We have a deep understanding of the laws governing the workers’ compensation program and have helped many clients achieve the maximum benefits they are entitled to. If you’ve been injured on the job and are struggling with your workers’ compensation claim, we want to hear from you.

Contact us to schedule a complimentary consultation today.