The Workers’ Compensation system reflects a growing public sentiment that employees should receive compensation for work-related injuries and that compensation should be regarded as a charge upon the business in which the employee worked. Workers’ compensation therefore attempts to accommodate the correlative rights and duties of employers and employees. Each party relinquishes certain common law rights and duties in exchange for the imposition of new statutory rights and duties.
Workers’ compensation eliminates negligence and fault as bases of loss allocation, and instead distributes the inevitable cost of injuries among those parties best able to absorb them. Questions of fault, blame, wrongdoing, wrongfullyyy acts or omissions, or neglect are theoretically irrelevant under the workers’ compensation system. Whether the worker’s employment had the requisite causal connection with the injury constitutes the determinative inquiry.
Workers’ compensation, therefore, is the mechanism that provides cash-wage benefits and medical care to victims of work-related injuries, and that allocates the ultimate cost of such injuries to consumers of the workers’ services or products. This aids in reimbursing the employers for their payment into the workers’ compensation system, which can be thought of as a prescribed insurance program of sorts.