The Great Tradeoff for Workers’ Compensation

Benefits

509 workers were injured in a three month period, with

only 37% receiving any benefits beyond hospital cost coverage

1907

The Pittsburgh Survey: Earliest systematic survey of workplace fatalities

526 people died in work accidents in one year;

and over half of families were compensated with only $100 or less

$100$

$

3,329 mining-related deaths occurred per year on average

Employees did not receive benefits uniformly

Cost of liability coverage for employers grew astronomically

18,000-21,000 people died from work-related injuries

Many workers did not bring their cases to court for fear of losing their jobs

Personal injury cases against employers increased

1911-1915

THE GREAT TRADEOFF: Workers sacrificed a constitutional right to sue for damages

Pennsylvania Workers’ Compensation Act

enacted

Bureau of Workers’ Compensation created

1915

Employers Employees

Established a limit for payments

Freed from unpredictability

of liability

Guaranteed lost wages and

medical benefits

Established a no-fault basis for

injuries

Heated debate began on whether illness developed as a result of an occupation should be covered by

workers’ compensation

1937

The Pennsylvania Occupational Disease Act established a separate law to protect workers who developed illnesses

in relation to their work

1939

Act modified to expand workers’ rights by providing a more liberal construction of the law

1972

Occupational diseases covered

Benefit levels raised

Mandatory for all employers to carry workers’ comp

Act amended to give most workers freedom to select their health care providers

1978

Utilization Review instituted1993

Act amended so workers can settle their comp cases for a lump sum

1996

Uninsured Employers Guaranty Fund established to protect workers whose employers do not carry workers’ comp insurance

2006

In light of the Great Tradeoff, evidence should be construed in favor of the injured worker, but

some judges are not following this principle

NOW

37%

=

$ +

Humanitarian foundation being eroded

Some judges put more value on the independent medical examiner’s evaluation of an injured worker than the workers’ own

treating physician

New process created for insurance carrier to review worker’s medical treatment

Can leave some workers footing the bill if carrier believes treatment is unrelated to the injury

www.pondlehocky.com 800-568-7500