Contractor's Workers Compensation

Construction contractors in California have been staggering under the cost of Workers' Compensation for years. Workers' Comp. is needed because, despite the best precautions, injuries can and do occur with any type of construction activity. The injury or hurt may occur due to the negligence or inadequate training of the worker, or can be the result of faulty equipment or improper set-up by the contractor.

The employing contractor should thoroughly check the credentials and qualifications of all workers before employment. Care should be taken to insure that all employees are properly trained and prepared for the work to be preformed.

The third situation that may cause injury to the worker is some natural disaster occurring during the course of work over which both the contractor and the worker have no control.

State Compensation Laws

Each state has its own legal provisions in order to meet these injuries on the job. Also the laws for workers' compensation differ from state to state and they keep changing in the same state from time to time. Despite these differences, the general objective of laws in each state is to ensure that the workers get the relief for injuries incurred on the job.

Compliance of Compensation Laws

Depending upon the workers' compensation laws in each state, their compliance by the contractors or employers is either compulsory or elective. While the laws requiring compulsory compliance need no explanation, under the elective laws, a contractor may choose to accept or reject the laws. In case the contractor elects to disregard the law, he loses certain defenses. Optional or elective compliance is prevalent only in two states: New Jersey and Texas.

Workers' Compensation Laws in California

The state treasury in California has set up a special account for Workers' Compensation Administration Revolving Fund under the Return to Work Program for reimbursement of certain amount of compensation to private contractors or employers who employ 50 or fewer full time workers.

Under this program a temporarily disabled worker is offered a compensation of $1,250 while a permanently disabled worker is offered $2,500.

The contractors and the employees can negotiate for the resolution of their disputes for occupational and non-occupational health care integration projects for the provision of medical and disability benefits.

Permanent Injury Benefits

A contractor or an employer has to offer regular, modified or alternative work for a period of 12 months after the injury becomes permanent or stationary, failing which he has to increase the disability payment by 15% within 60 days. The provision is applicable to contractors employing 50 or more workers in their construction work.

Temporary Disability Benefits

The contractors have to pay temporary benefits to their workers for a limited period of 104 weeks within a period of 2 years from the date of commencement of the temporary disability payments. In certain health conditions such as acute and chronic hepatitis B, acute and chronic hepatitis C, amputations, severe burn and eye injuries, contracting HIV, pulmonary fibrosis and lung problems and so on, the disability payments have to be increased to 240 weeks.