Which authority requires employers to purchase and maintain workers' compensation insurance for their employees?

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Multiple Choice

Which authority requires employers to purchase and maintain workers' compensation insurance for their employees?

Workers’ compensation coverage is a requirement created and enforced mainly by state governments. Each state passes its own workers’ compensation statute and appoints a board or commission to administer it. Employers in most states must carry workers’ compensation insurance or prove they can self-insure, so injured employees receive medical care and wage replacement without having to sue their employer. The federal government does have rules for certain workers (such as federal employees or workers covered under specific federal acts), but for the private sector and most employers, state laws are what establish the obligation and the process for obtaining and maintaining coverage. The other options don’t establish this requirement: a state health department focuses on public health matters, the National Labor Relations Board handles labor relations and collective bargaining, and the Internal Revenue Service deals with taxes and payroll reporting, not workers’ compensation coverage.

Workers’ compensation coverage is a requirement created and enforced mainly by state governments. Each state passes its own workers’ compensation statute and appoints a board or commission to administer it. Employers in most states must carry workers’ compensation insurance or prove they can self-insure, so injured employees receive medical care and wage replacement without having to sue their employer.

The federal government does have rules for certain workers (such as federal employees or workers covered under specific federal acts), but for the private sector and most employers, state laws are what establish the obligation and the process for obtaining and maintaining coverage.

The other options don’t establish this requirement: a state health department focuses on public health matters, the National Labor Relations Board handles labor relations and collective bargaining, and the Internal Revenue Service deals with taxes and payroll reporting, not workers’ compensation coverage.

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