Worker’s Compensation vs. Unemployment Insurance Benefits: Know the Difference

by Christine Muller

So, fun tidbit for the month of June, did you know June 27th is National Onion Day – so I’d thought I’d peel back the layers of HR a little and provide some context and definitions for some different layers, so to speak

Let’s test your knowledge –

Do you know the difference between Worker’s Compensation and Unemployment Insurance benefits?

Worker’s Compensation is a government mandated program designed to offer a type of business insurance that provides benefits to employees who experience work related injuries (or disability or illnesses- it provides medical expenses, lost wages, and rehabilitation costs to employees injured or ill in the course and scope of employment.  It is mandated by each state and the wage and medical benefits may vary by state.

Unemployment Insurance provides financial benefits for workers who are unemployed through no fault of their own (a variety of circumstances covered) and a person who is actively seeking work is unable to find work (for example).  It is a joint state-federal program that provides these benefits.

Basically, work comp covers an employee for injuries for which the employer would be liable while disability benefits cover injuries that prevent you from working but aren’t necessarily work-related.  It is important to note that typically, work comp benefits last longer.

Now, let’s add in some more HR fun facts – and dice up all that onion!

Can an employee be on more than 1 type of leave at the same time?
There is an HR ‘Bermuda’ Triangle we in the HR realm are oftentimes challenged with –  which is where an employee will be on numerous types of leave all at once.

It can be very challenging to manage an employee’s need for leave while remaining compliant with “the Bermuda Triangle of leave laws” which exists in the space between workers’ compensation laws, the Family and Medical Leave Act (FMLA), and the American with Disabilities Act (ADA).

This is just one of the many ‘layers’ of HR and employment laws that we are able to assist you with!

For any of us who watched the coronation of King Charles III – we can’t forget about the World’s Biggest Onion – which received its crown for weighing in at 18 lb 11 oz!   Wonder how many layers that onion had, yikes!!!