Each state has its own workers' compensation
laws to handle claims from employees who are injured on the job. These laws
are strict liability - fault and negligence by the employer are not considered
in order to collect benefits. Punitive
damages are not available to the employee. The legal defenses available in a
civil action such as comparative negligence and assumption of the risk are not
available to the employer in workers' compensation.
However, the injury or illness has to be incurred in the course of employment
in order for the workers' compensation system to provide benefits to the injured
worker. Workers' compensation is generally the excluysive remedy for an
employee's injuries or illnesses arising out of the course of employment. It
is typically required by the state for every employee - although state law
may provide for specific exemptions for officers/owners, small companies (those
with three/four/five or fewer employees), domestic workers, farm hands, and
independent contractors.
Workers' compensation hearings, if necessary, are normally administrative
proceedings that take place in a separate court system. However, there are some
limits to workers' compensation being an "exclusive remedy."