What is workers compensation coverage intended to do?

Workers compensation is intended as a no-fault system to compensate employees for work related injuries. In exchange for an assurance of protection regardless of fault, compensation benefits are the "exclusive remedy" that an employee has against his employer for a work-related injury. Benefits are limited to wage loss, medical and rehabilitation expenses and are payable as long as the disability lasts or medical treatment is reasonably necessary.

Despite the exclusive remedy provision of the Workers Compensation Act, an employee may still sue an employer for other employment related issues such as discrimination, sexual harassment, retaliation for filing a compensation claim and wrongful discharge, among others. An employee may also recover damages for an injury from a third party; however, when recovery is available, the employer can be reimbursed for a portion of the compensation benefits it paid.