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

Which group is primarily responsible for determining eligibility for workers' compensation benefits?

1. Employers

2. Insurance companies

3. State Workers' Compensation Boards

4. Federal Government

The correct answer is: State Workers' Compensation Boards

The group primarily responsible for determining eligibility for workers' compensation benefits is the State Workers' Compensation Boards. These boards are established at the state level and oversee the administration and enforcement of workers' compensation laws. They evaluate claims made by injured workers and ensure that the benefits provided align with state regulations. State Workers’ Compensation Boards have the expertise to interpret the laws specific to their state, assess the qualifications of claims, investigate work-related injuries or conditions, and make determinations on compensation. They serve as an impartial entity that adjudicates disputes between the injured workers and employers or insurance providers regarding claims. While employers and insurance companies have roles in the process, such as reporting injuries or providing the necessary insurance coverage, they do not have the authority to unilaterally determine a worker's eligibility for benefits. The federal government does not generally oversee workers' compensation, as it is primarily regulated at the state level, which further reinforces the State Workers’ Compensation Boards' central role in eligibility determinations.