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

Who typically administers the workers' compensation program at a state level?

1. Local business associations

2. Private insurance companies

3. State government agencies

4. Federal agencies

The correct answer is: State government agencies

The administration of the workers' compensation program at the state level is generally the responsibility of state government agencies. These agencies are tasked with overseeing the laws and regulations surrounding workers' compensation, ensuring that injured workers receive the benefits they are entitled to for work-related injuries or illnesses. Each state has its own specific agency or department that manages the program, often known as the workers' compensation board or commission. State government agencies are crucial in establishing the rules for both employers and employees in regard to reporting injuries, filing claims, and determining the benefits available. They also provide resources for dispute resolution when claims are contested, ensuring a fair process for all parties involved. In contrast, local business associations, private insurance companies, and federal agencies do not typically manage state workers' compensation programs. Local business associations may support businesses in understanding compliance but do not administer the program. Private insurance companies can offer workers' compensation insurance but do not control the program's administration or regulations. Federal agencies have a limited scope in this area, primarily dealing with specific sectors or situations where federal law intersects with state workers' compensation laws.