Future Business Leaders of America (FBLA) Business Law Practice Exam

What does workers' compensation provide for employees?

1. Liability coverage for employers

2. Medical expenses and lost wages due to job-related injuries

3. Retirement benefits after a certain age

4. Incentives for overtime work

The correct answer is: Medical expenses and lost wages due to job-related injuries

Workers' compensation serves as a critical safety net for employees who sustain job-related injuries or illnesses. This system is designed to provide financial support, specifically covering medical expenses incurred due to these injuries and compensating for lost wages while the employee is unable to work. The objective is to ensure that employees can access necessary medical care and have some income replacement during their recovery period, promoting faster rehabilitation and return to work. The other options do not accurately reflect the primary function of workers' compensation. Liability coverage for employers is more aligned with general liability insurance, which protects them against lawsuits related to workplace incidents rather than directly addressing employee needs. Retirement benefits relate to long-term savings and do not factor into workers' compensation, which focuses on injuries occurring in the workplace. Finally, incentives for overtime work are not connected to the workers' compensation program, as this is typically managed through wage policies and labor laws instead.