Workers’ compensation

Workers’ compensation is state-mandated insurance that pays medical expenses and partial lost wages when an employee is injured or becomes ill because of their job.

Updated Sep 20262 min read2 primary sources

In exchange, the employee generally gives up the right to sue you over those injuries. Coverage requirements, benefit levels, and the claims process are set at the state level and vary by jurisdiction and employer size. Many states require employers with any employees to carry coverage. Some exempt very small employers or specific industries, and Texas lets most private employers choose whether to carry it. State disability insuranceState disability insurance (SDI). State disability insurance (SDI) is a state program replacing part of an employee’s wages lost to off-the-job illness or injury, funded by payroll contributions.Click to open the term, where it exists, covers wages lost to sickness or injury away from work.