Requirements and Waivers

• Workers' compensation is compulsory or required by law for employers but exceptions or waivers may apply for specific states. A waiver is typically granted for members of a board of directors, partnerships and sole proprietors. Arizona is one state that requires employers to obtain a workers' compensation policy but also grants waivers. New Jersey is a state in which coverage is required but does not permit any waivers.
  
  

Physician Choice

• The choice of physician can be either left up to the employee or the employer depending on what the laws for a particular state. States such as Arizona and Florida allow the employee to pick the physician unless an employer is self-insured. In the state of New Jersey the employer has the choice of selecting the physician to use. In Kentucky, an employee can choose the physician from a list supplied from the insurance carrier or managed care organization.
  
  

Waiting Period

• Most states have a waiting period that applies before a workers' compensation policy will begin to pay benefits to an injured employee. The state of Arizona has a waiting period of seven days before benefits are paid. New Jersey also has a waiting period of seven days, but it does not apply to groups such as volunteer firemen, fire marshals, and rescue squad workers. The waiting period for Illinois is only three days, but applies to temporary total disability only.
  
  

Retroactive Compensation

• Retroactive compensation occurs when payments are made for the waiting period or time frame before benefits are paid for workers' compensation. The time period before retroactive compensation is paid can differ from state to state. In the state of Arizona and Illinois the period is 14 days. New Jersey has a period of seven days and in Massachusetts retroactive compensation will be paid after 21 calendar days.
  
  

Attorneys Fees

• The amount of attorneys fees that can be paid from a workers' compensation policy are typically included within each state's insurance statutes. The state of Arizona permits 25 percent of attorneys' fees to be paid by a workers' compensation insurance policy. New Jersey and Illinois allow for 20 percent of attorneys' fees to be paid. Kentucky allows attorneys' fees to be paid based on specific dollar amounts. The first $25,000 is 20 percent, $10,000 beyond that is 15 percent with a 5 percent balance up to a $12,000 maximum per year.