Financial and Economic Impact of Worker's Compensation Regulations And Compliance
The program and concept of Workers' Compensation might appear to be a product of a civilized society and the modern era, but nothing could be further from the truth. In fact, Workers' Compensation has essentially been around for as long as people have been completing task for payment of some form of another, because people have always been getting hurt in some way, on the job. "The history of compensation for bodily injury begins shortly after the advent of written history itself1. The Nippur Tablet No. 3191 from ancient Sumeria in the Fertile Crescent outlines the law of Ur-Nammu, king of the city-state of Ur. It dates to approximately 2050 B.C.2. The law of Ur provided monetary compensation for specific injury to workers' body parts, including fractures. The code of Hammurabi from 1750 B.C. provided a similar set of rewards for specific injuries and their implied permanent impairments. Ancient Greek, Roman, Arab, and Chinese law provided sets of compensation schedules, with precise payments for the loss of a body part. For example, under ancient Arab law, loss of a joint of the thumb was worth one-half the value of a finger. The loss of a penis was compensated by the amount of length lost, and the value an ear was based on its surface area. All the early compensation schemes consisted of "schedules" such as this; specific injuries determined specific rewards" (Guyton, 1999). This compensation schema demonstrates the notion that is present today that not all injuries are as serious as others and that different injuries deserve different forms of payment.
Of course, one could make a strong case for the fact that this system was coarser than the one in place today (though some disgruntled workers might argue the opposite) as the value of a body part seems largely connected to its size. Today the concepts of "quality of life" and "pain and suffering" have been introduced and compensation can be immediately linked to these two issues. For example, the notion of a man being compensated for the loss of part of his penis based on the length of this organ that is lost is a completely ludicrous notion to a modern audience. The contemporary mentality is that once a man's penis is damaged or deformed in any sort of way, the appropriate compensation thus begins.
However, despite the fact that the notion of compensation for bodily injuries is as old as work itself, it didn't really leave an imprint upon modern society until the industrial revolution. Even though the industrial revolution was a crucial and exciting time for America and one which created an enormous push for modernity and progress, there was a price to pay for the rapidity of expansion. It was indeed the machine age, and human beings were the ones creating and operating these machines. At the same time, there was a certain give and take push and pull and margin of error and mistakes that had to occur. "As economic and industrial activities flourished, the number of work injuries also grew. The increasing use of machinery, new concepts of producing goods, and the pressure of increased demand for products resulted in more injury problems without solutions for employers and employees. For the most part, workers who were injured on the job had no recourse other than to sue their employers at common law, an expensive and time-consuming process. The court system was crowded, causing long delays. Compensation for injuries was usually insufficient and uncertain. The employee sometimes was forced to bear the expense of injury himself or had to throw himself on the mercy of welfare" (aascif.org). This demonstrates the very real consequences of not having a proper system in place for workers to seek financial help within, for their injuries. Without a formal system of workers' compensation the very real consequences were things like clogged court systems, overuse of the welfare system, and generally large amounts of wounded employees who had nowhere else to turn and no way to support their families. This demonstrates how even though this emerging machine age was providing a definitive benefit to society; it was also damaging a large chunk of the workers contributing to a participating in this crucial time.
Eventually, "Laws were enacted to provide workers injured on the job with prompt, equitable, and guaranteed benefits. Injured workers received medical care and disability income irrespective of fault. Employers, in turn, were protected from potentially catastrophic loss by a stated amount of specific benefits for the injuries suffered by the employee. The worker was prohibited...
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Many have had to sell to larger competitors or exit the business entirely, with the owner of Rockwell's selling to an investment group which manages small, independent cafes and restaurants. The bottom line is that the high cost of worker's compensation is forcing many employees to quit offering healthcare or risk not being able to stay in business. This supports the empirically-derived research that states workers' compensation is the
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