BU353 Lecture 15: Chapter 15
Chapter 15: Employee Benefits
Workers’ Copesatio laws govern employer responsibility for workplace injuries to employees.
Workers’ opesatio las hae to ai features:
(1) employers are required to pay specified benefits for monetary loss to injured employees without
regard to employer fault or negligence
(2) employees are not allowed to sue employers for injuries under tort laws
Workers’ opesatio eefits included medical benefits, benefits for total disability, benefits for
permanent partial disability, and survivor benefits. For permanent partial disability payments, which
represent a large proportion of the total cost of disability benefits, the amount of benefits may be
sheduled or ay e ased o the orker’s estiated loss of earig apaity.
Many employees receive a material amount of their total compensation in the form of employer-related
retirement plans and group life and health insurance. Obtaining benefits through work is often
advantageous compared to employees purchasing individual coverage because qualifying employment-
related benefits reduce income taxes for employees and administrative expense loadings in group
insurance premiums are lower than for individual insurance.
Flexible Benefit Plans – employees typically receive a core minimum package of required benefits and
credits to select from a menu of optional benefits
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Document Summary
Workers" co(cid:373)pe(cid:374)satio(cid:374) laws govern employer responsibility for workplace injuries to employees. Workers" (cid:272)o(cid:373)pe(cid:374)satio(cid:374) (cid:271)e(cid:374)efits included medical benefits, benefits for total disability, benefits for permanent partial disability, and survivor benefits. For permanent partial disability payments, which represent a large proportion of the total cost of disability benefits, the amount of benefits may be s(cid:272)heduled or (cid:373)ay (cid:271)e (cid:271)ased o(cid:374) the (cid:449)orker"s esti(cid:373)ated loss of ear(cid:374)i(cid:374)g (cid:272)apa(cid:272)ity. Many employees receive a material amount of their total compensation in the form of employer-related retirement plans and group life and health insurance. Obtaining benefits through work is often advantageous compared to employees purchasing individual coverage because qualifying employment- related benefits reduce income taxes for employees and administrative expense loadings in group insurance premiums are lower than for individual insurance.
