History of Worker’s Compensation

This essay discusses the history of worker’s compensation and its provisions in Indiana today. Worker’s compensation is defined as a payment for the individual who works or labor for another person, group, or organization, or for injuries (Tramposh 1991). Moreover, worker’s compensation is a social insurance, or akin to social security and unemployment reparation. Nonetheless, it is the most ancient kind of social insurance (Schoening 2003). The earliest use of insurance arose roughly 3000 BC in China when traders would partition their goods into a number of ships, safeguarding their assets and distributing any failures or damages among themselves. This practice was sustained and the Babylonians in 1750 BC invented a method where the trader would borrow assets to financially support his cargo of merchandises (Tramposh 1991). He gave the lender an extra amount of cash and in trade for this extra amount, the lender authorized the invalidation of the loan should the cargo be damaged, embezzled, or lost. According to Tramposh (1991), this practice was documented roughly 1750 BC in the Code of Hammurabi.

Prior to the early 20th century, worker’s compensation remained absent in the United States. At the moment, most individuals provided labor or services. However, for people who did not, in the initial period of the industrial revolution, when a laborer was harmed in the workplace, the issue had to be pursued through the web of legal courts. Injured laborers usually fail in these cases (Lencsis 1998). Most businesses or organizations were much better prepared or knowledgeable than their injured workers in manipulating the courts. Because of this it became apparent that workers should have some level of security from the trouble of injuries or damages on the job.

Don't use plagiarized sources. Get Your Custom Essay on
History of Worker’s Compensation
Just from $13/Page
Order Essay

In Indiana, the current worker’s compensation system is obligatory, implying that companies are obliged to give worker’s compensation insurance for their workers. Complete healthcare benefits are given to workers eligible for worker’s compensation benefits (Schoening 2003). Compensations are given for temporary total disability (TTD) and permanent total disability (PTD) in a sum decided by a fraction of the employee’s earnings. Compensation may be accessible for permanent disfigurement which incapacitates the potential worth of prospects of the worker. Occupational and physical treatment compensations are accessible. Death benefits are allocated to a worker’s living spouse or children, founded on a fraction of the worker’s salaries (Schoening 2003).

A particularly difficult issue presently in Indiana and in other states is the particularly extensive validity of the federal Employee Retirement Income Security Act of 1974 (ERISA). ERISA, in general, controls employee benefits, like pension plans, but not those plans that are continued entirely just to adhere to relevant worker’s compensation laws (Lencsis 1998). It displaces state laws that concern the plans that it regularizes, although they do not contradicts its provisions. Nevertheless, it does not supersede state-based insurance laws. Altogether, these requirements imply that a state may control employees’ compensation insurance, but as long as it is given within a ‘plan’ that is continued only for the purposes of worker’s compensation (Lencsis 1998). Slowly but surely, as the laws were modified continually, almost all occupations became insured, whether dangerous or not, and virtually all of them happened to be binding.


Lencsis, Peter. Workers Compensation: A Reference and Guide. Westport, CT: Quorum Books, 1998.

Schoening, Michael. Worker’s compensation in Indiana. National Business Institute, 2003.

Tramposh, Anne. Avoiding the Cracks: A Guide to the Workers’ Compensation System. New York: Praeger Publishers, 1991.

Order your essay today and save 20% with the discount code: OFFNOW

Order a unique copy of this paper

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
Top Academic Writers Ready to Help
with Your Research Proposal
Live Chat+1(978) 822-0999EmailWhatsApp

Order your essay today and save 20% with the discount code OFFNOW