The Uncompensated Worker:
Financial Impact of Workers’ Compensation
Few studies have examined how household finances are affected by receiving workers’ compensation in lieu of regular wages. As such, CAAA is excited to announce that WorkCompCentral has just released a special report on the financial impact of workers’ compensation on injured workers and their families.
The report uses realistic scenarios to estimate the financial effects of a work injury. The scenarios show that a brief work disability often results in a sharp cut in take-home pay. An extended disability lasting for months can cause many injured workers to struggle to meet their household expenses, forcing these employees to dig into their savings and risk losing their financial cushion.
The workers’ comp system is intended to pay for itself and not burden the economy. This is the first report to go beyond anecdote to explore the risk of family instability while an injured worker recovers.
The bottom line: States can no longer ignore the financial impact of workers’ compensation on not only workers, but also the state’s limited public resources for struggling families.