Workers' Compensation

What Are My Obligations Under Work Comp Insurance Laws?

Every business, in almost every state across the U.S., must have workers’ compensation to protect themselves and their employees. Under work comp insurance laws, employers have specific obligations.

Employee Responsibilities Under Workers' Compensation

In addition to offering workers’ compensation insurance, employers must also:

  • Post notices in frequently visited places around the place of employment;
  • Provide medical treatment for employees who experience an injury or illness while at work;
  • Create written reports of each accident resulting in an injury, and file the report with all necessary entities; and
  • Furnish all critical information as requested by those entities, which may include a workers’ compensation board or insurance company.

Workers' Compensation Law in Utah & Arizona

In Utah, all employers must have workers’ compensation coverage, apart from real estate and insurance sales, certain small agricultural businesses, household work, and casual employment. Work comp covers medical care, all forms of disability (permanent, temporary, partial, total) and death benefits, should death occur.

In Arizona, all employers who regularly hire employees must have workers’ compensation, apart from independent contractors, casual employment, or domestic work. Work comp covers medical expenses, lost wages, and death benefits, if applicable.

Employer Retaliation

Most states prohibit employers from retaliating against or punishing an employee who files a workers’ compensation claim. Retaliation may include employee termination, discrimination, demotion, or salary reduction. If an employer retaliates, employees can file a retaliation claim. It is every employer’s responsibility under law to treat employees fairly.

The Consequences of Not Having Workers' Comp Insurance

Even if you are a small business owner without any current record of workplace injury or illness, you must have workers’ compensation insurance in place. If you do not secure workers’ compensation insurance, you may face serious consequences.

In Utah, employers can accrue penalties of at least $1,000 and injunctions, prohibiting continued business operations. Employers can also be exposed to legal action by employees who sue for damages after an injury.

In Arizona, employees also could sue should they need compensation for injuries or illness. The other consequences include a penalty of $1,000 for not having the correct insurance, followed by $5,000 and $10,000 for repeated mistakes.

Learn More by Calling Workers' Comp Carrier American Liberty

The bottom line is this: as an employer, you are responsible for providing your employees with adequate workers’ compensation insurance. To learn more about your obligations or to choose American Liberty as your workers’ compensation carrier, give us a call at 801-226-8008 or send us a message.