Assessments of Employers for Workers' Compensation (7:XIV): Difference between revisions

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{{REVIEWED LSLAP | date= June 30, 2021}}
{{REVIEWED LSLAP | date= September 2, 2024}}
{{LSLAP Manual TOC|expanded = workers}}
{{LSLAP Manual TOC|expanded = workers}}


The theory behind the workers’ compensation system is that the risk of loss through occupational disease or injury resulting from the workplace should be borne by industry as a cost of doing business. The WCA is administered by the WCB, which is an independent administrative agency created by the provincial government. The program is funded by compulsory assessments on employers, which make up the Accident Fund. These assessments must be paid by the employer and cannot be deducted from the employee’s pay (Act, s. 118 [Former Act, s. 14]). The Board gets preferential treatment in its power to collect from an employer. An employee whose employer is subject to the WCA is covered by the WCA regardless of whether or not the employer pays premiums.
The theory behind the workers’ compensation system is that the risk of loss through occupational disease or injury resulting from the workplace should be borne by the industry as a cost of doing business. The WCA is administered by the WCB, which is an independent administrative agency created by the provincial government. The program is funded by compulsory assessments on employers, which make up the Accident Fund. These assessments must be paid by the employer and cannot be deducted from the employee’s pay (WCA, s. 118 [Former Act, s. 14]). The Board gets preferential treatment in its power to collect from an employer. An employee whose employer is subject to the WCA is covered by the WCA regardless of whether or not the employer pays premiums.


Industries are divided into classes and sub-classes. The total assessments for each class are fixed according to the principles of collective liability; the Board is to collect sufficient money to cover the past and estimated future costs of all the claims from workers in each sub-class. Each employer then pays its share, based on the size of its payroll and adjusted for the number of claims against the employer under the Board’s “experience rating” scheme. One negative effect of the experience rating system is that employers obviously have an economic interest in contesting their worker’s claims. This makes the system more adversarial, which might be seen to contradict the principles of Workers’ Compensation.
Industries are divided into classes and sub-classes. The total assessments for each class are fixed according to the principles of collective liability. The Board is to collect sufficient money to cover the past and estimated future costs of all the claims from workers in each sub-class. Each employer then pays its share, based on the size of its payroll and adjusted for the number of claims against the employer under the Board’s “experience rating” scheme. One negative effect of the experience rating system is that employers obviously have an economic interest in contesting their workers’ claims. This makes the system more adversarial, which might be seen to contradict the principles of Workers’ Compensation.
 
Some self-employed contractors are considered employers under the Act and therefore are assessed as such. These self-employed workers can purchase “personal optional protection” (POP) to cover their own risk of injury, in addition to the assessments they are required to pay to cover their risk as employers. This arrangement is common in the logging, transportation, and construction industries.  


Some self-employed contractors are considered employers under the ''Act'' and are therefore assessed as such. These self-employed workers can purchase “personal optional protection” (“POP”) to cover their own risk of injury, in addition to the assessments they are required to pay to cover their risk as employers. This arrangement is common in the logging, transportation, and construction industries.




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Latest revision as of 00:11, 3 September 2024

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by the Law Students' Legal Advice Program on September 2, 2024.
LSLAP Manual
LSLAP Manual
This page is from the
Law Students' Legal
Advice Program Manual.
See the full contents.
LSLAP Manual
Introduction
Chapters
7. Workers' Compensation
 · I. Introduction

 · II. Legislation, Policy & Guidelines
 · III. Introduction to Worker Compensation Claims
 · IV. LSLAP's Role at Initial Decision
 · V. Limitation Periods & Timing of Decisions
 · VI. Making a Claim
 · VII. The Claim Acceptance Process
 · VIII. Worker Status
 · IX. Disability and Causation
 · X. Time Limits & Procedures
 · XI. Claim Benefits
 · XII. Appeals
 · XIII. Health and Safety Regulations
 · XIV. Assessments of Employers
 · XV. WCB Fair Practices Office
 · Appendix A: Abbreviations
 · Appendix B: List of Cases
 · Appendix C: Referrals
 · Appendix D: Resources
 · Appendix E: Small Claims Flow Chart
 · Appendix F: Checklist for Interviews
 · Appendix G: Checklist for Appeals

 · Appendix H: Sample Authorization Form
v • d • e



The theory behind the workers’ compensation system is that the risk of loss through occupational disease or injury resulting from the workplace should be borne by the industry as a cost of doing business. The WCA is administered by the WCB, which is an independent administrative agency created by the provincial government. The program is funded by compulsory assessments on employers, which make up the Accident Fund. These assessments must be paid by the employer and cannot be deducted from the employee’s pay (WCA, s. 118 [Former Act, s. 14]). The Board gets preferential treatment in its power to collect from an employer. An employee whose employer is subject to the WCA is covered by the WCA regardless of whether or not the employer pays premiums.

Industries are divided into classes and sub-classes. The total assessments for each class are fixed according to the principles of collective liability. The Board is to collect sufficient money to cover the past and estimated future costs of all the claims from workers in each sub-class. Each employer then pays its share, based on the size of its payroll and adjusted for the number of claims against the employer under the Board’s “experience rating” scheme. One negative effect of the experience rating system is that employers obviously have an economic interest in contesting their workers’ claims. This makes the system more adversarial, which might be seen to contradict the principles of Workers’ Compensation.

Some self-employed contractors are considered employers under the Act and are therefore assessed as such. These self-employed workers can purchase “personal optional protection” (“POP”) to cover their own risk of injury, in addition to the assessments they are required to pay to cover their risk as employers. This arrangement is common in the logging, transportation, and construction industries.


v • d • e
 
Chapters 1-7
Criminal Law  · Youth Justice  · Family Law  · Victims  · Public Complaints · Human Rights  · Workers Compensation
Chapter One:
Criminal Law
Chapter Two:
Youth Justice
Chapter Three:
Family Law
Chapter Four:
Victims
Chapter Five:
Public Complaints
Chapter Six:
Human Rights
Chapter Seven:
Workers' Compensation
I. Introduction · II. Governing Legislation, Policy & Guidelines · III. Introduction to Compensation Claims for Injured Workers · IV. LSLAP's Role at the Initial Decision Level · V. Limitation Periods and Timing of Decisions · VI. Making a Claim · VII. The Claim Acceptance Process · VIII. Worker Status · IX. Disability and Causation · X. Time Limits and Procedures · XI. Claim Benefits · XII. Appeals · XIII. Health and Safety Regulations · XIV. Assessments of Employers · XV. The WCB Fair Practices Office · Appendix A: Abbreviations · Appendix B: List of Cases · Appendix C: Referrals · Appendix D: Resources · Appendix E: Small Claims Flow Chart · Appendix F: Checklist for Interviews · Appendix G: Checklist for Appeals · Appendix H: Sample Authorization Form
© Copyright 2024, The Greater Vancouver Law Students' Legal Advice Society.


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