Workers compensation elective

Workers compensation laws followed and several states and the federal government passed them. Courts declared initial laws unconstitutional over issues of due process and mandatory participation by employers. State laws that followed were primarily elective laws. Employers could elect to come under the law. The first constitutionally acceptable workers compensation law was passed in 1911. Since then, all states have passed such laws. States continue to change laws to include more workers, to extend and modify benefits, change administrative procedures and restructure benefit methods. States also look to reduce workers compensation costs to compete for employers. 

Today there are two major types of workers compensation laws compulsory and elective. A compulsory law requires each employer that is under its jurisdiction to accept its provisions and provide specified benefits. Under an elective law an employer has the right to accept or reject participation. If an employer rejects compliance with the law, the employer loses the three common-law defenses and becomes virtually defenseless. In effect, elective laws are compulsory. Most early workers compensation laws found constitutional were elective. Nearly all are now compulsory for employers. 

Today workers compensation laws cover about 90% of aU wage and salary employees. Some laws exclude certain categories of workers from protection. The exceptions vary among the different state and federal laws. Most common exceptions are domestic servants, casual (short-term, temporary) laborers, agricultural or seasonal farm laborers, volunteer workers, and workers covered by other laws (railroad and maritime workers). The laws exclude most professional athletes because they often have injury compensation clauses in their contracts. In many states, employers with fewer than two to five employees are also exempt. Under most laws, employers may elect to cover excluded employees voluntarily. In some states, exempted workers must agree with an employer who elects coverage voluntarily. 

In the past, states have avoided jurisdictional problems by not requiring public employees of local government units to have workers compensation insurance. Now most state laws require insurance for all public employees, whether career, elected or appointed. 

---