If you own a business or manage an HR department, you know just how important workers’ compensation is. No matter how safe the environment is, work-related accidents happen daily, and it’s essential for workers to have the financial protection they deserve.
Laws protecting workers in the event of bodily injury date back as far as 2050 B.C. in ancient Sumeria. These laws were in place to compensate workers if they experienced some type of physical injury—from losing a finger or limb to fracturing a wrist or ankle.
Workers’ comp laws weren’t seen in the United States, however, until the early 1900s. These laws have continued to evolve over the years, having a major impact on payroll. Let’s take a look at some of the key changes in workers’ comp legislation, the impact on payroll solutions and management, and the role of PEOs in navigating legal changes.
Key Changes in Workers’ Comp Legislation
While workers’ compensation legislation is still rooted on the same foundation—to support workers who become injured or ill as a direct result of their job—there have been some key changes over the years.
Mental health coverage
In the past, workers’ compensation insurance has primarily covered physical injuries or illnesses. In more recent years, the importance of mental health has become more prevalent than ever. Workers’ comp laws are now expanding to include mental health coverage for work-related injuries that may go deeper than the physical.
Telehealth options
Telehealth and telemedicine have become an essential part of wellness—particularly after the pandemic in 2020. These virtual options for support have helped improve the efficiency of the healthcare system, allowing individuals who become injured at work to get the help they need for non-emergent issues in a more timely manner.
Increased benefits
Inflation and the cost of living continue to rise, and workers’ compensation benefits have needed to increase in order to properly support injured workers through their recovery.
Remote work and the gig economy
Working from home or on a project-by-project basis has gained popularity in recent years. This has created questions around workers’ compensation laws and what dictates a work-related injury. Additionally, while full-time employment has been a requirement for workers’ comp in the past, coverage has started expanding into the gig economy as well.
Impact on Payroll Solutions and Management
As workers’ compensation laws continue to evolve, it’s necessary now more than ever to maintain updated workplace policies. Training your employees on these new policies is imperative, so that no questions are left unanswered. This helps keep your team informed and adaptable as things shift, which ultimately helps improve safety and morale.
For HR managers, keeping your team up to date with current laws and regulations is an essential part of the job. The more prepared your workforce is, the easier it will be to navigate challenges that might arise with any new claims that are filed.
Role of PEOs in Navigating Legal Changes
Professional employer organizations—or PEOs—play a pivotal role in helping employers navigate legal changes. PEOs handle the administrative tasks of a business, such as payroll and workers’ compensation.
Not only are PEOs well-versed in payroll and claims processes, but they are also compliance specialists. It’s their job to stay on top of ever-evolving workers’ comp laws. Rules and regulations change constantly, and they also differ state-to-state—depending on where your company or workers are located. PEOs help ensure that your business remains compliant with these laws no matter where you or your workers are located.
PEOs also help implement training programs focused on anything from workplace safety to compliance. These training programs can help your employees stay up to date on rules and regulations when it comes to workers’ comp laws.
Staying Ahead of the Curve with Updated Payroll Solutions
Workers’ compensation laws have continued to evolve over the years. That evolution has created a need to stay ahead of the curve with updated solutions. Partnering with a PEO can help your business navigate the legal changes and ensure compliance with workers’ comp laws.
If you’re ready to simplify compliance and stay ahead of changing workers’ comp laws, OCMI Workers’ Comp is here to help. Our expert PEO solutions provide the guidance and support your business needs to navigate legal updates with confidence. Contact us today to ensure your payroll and workers’ comp solutions are always up to date!
