The History Behind Workers Compensation

The History Behind Workers Compensation

Investing in North Carolina workers comp is not only beneficial for a company to minimize their risks, but also good for employees, morale, and public perception. Interestingly, workers compensation policies were not always around. Although today many states mandate this type of coverage, this was not the case several years ago.

Common Law

Before there were specific laws for workers compensation, work related injuries were governed by the common law. The masters, or employers, were responsible for injuries that happened to their servants, or employees. With common law, the only way an employee could recover compensation was to file a lawsuit against their employer.

Very few people filed lawsuits because the employer could argue that the employee assumed risks when they went to work. The employer also argued that the injury was due to the employee’s negligence. In some cases, the injury was blamed on another employee. Because of these arguments, compensation for work related injuries were rare.

Mandatory Coverage

During the early 1900s, the public began to sympathize with injured employees. Many states began to pass laws favoring employee rights. Today, workers compensation is mandatory in most states.

If you need North Carolina workers comp, it is important to recognize the value of this policy. It will protect you and your employees so you can focus on your business without worrying about a costly lawsuit.

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