I am often asked what is the purpose of the California Workers Compensation System?

There are multiple purposes and effects of the workers’ compensation laws. California workers’ compensation is essentially a “bargain” between the employer and employee that is mutually beneficial.

The California Supreme Court, clearly set forth the purposes of California workers’ compensation. They are:.

1. to ensure that the cost of industrial injuries will be part of the cost of goods rather than a burden on society.
2. to guarantee prompt, limited compensation for an employee’s work injuries, regardless of fault, as an inevitable cost of production.
3. to spur increased industrial safety.
4. in return, to insulate the employer from tort liability for his employee’s injuries.

The California Supreme Court stated,” Our system of workers’ compensation does not provide a make-whole remedy. The Workers’ Compensation Law is intended to award compensation for disability incurred in employment. The purpose of the award is not to make the employee whole for the loss which he has suffered but to prevent him and his dependents from becoming public charges during the period of his disability. The purpose of workmen’s compensation is to rehabilitate, not to indemnify, and its intent is limited to assuring the injured workman subsistence while he is unable to work and to effectuate his speedy rehabilitation and reentry into the labor market.”.

The California Constitution also reflects the policy supporting the workers’ compensation system. The system accomplishes its purposes by a structure that is informal, as unencumbered by legal niceties as possible and procedurally as simple as possible.

There are multiple purposes and effects of the workers’ compensation laws. As described in Section 1.3 Early California Laws, workers’ compensation is essentially a “bargain” between the employer and employee that is mutually beneficial. Thus, the market– society in general– bears the burden of the limited compensation provided.

The California Supreme Court stated,” Our system of workers’ compensation does not provide a make-whole remedy. The Workers’ Compensation Law is intended to award compensation for disability incurred in employment. There are multiple purposes and effects of the workers’ compensation laws. As described in Section 1.3 Early California Laws, workers’ compensation is essentially a “bargain” between the employer and employee that is mutually beneficial.