What is workers' compensation?
The Workers' Compensation law requires most employers to provide benefits to eligible employees who have injuries arising out of and in the course of employment. [85.61(7)] "Arising out of" and "in the course of" are legal definitions involving much interpretation that cannot be fully discussed in this outline but the injury must have some connection to work and that connection must be substantial.
What types of injuries are covered?
In Iowa, "injury" is defined very broadly to include any health impairment other than the normal building up and tearing down of body tissues. The health impairment must be a result of employment activities.
Diseases and hearing losses are also considered to be injuries if they are a result of the employment activities or exposures. (85A, 85B)
An employee is entitled to benefits for a preexisting injury or disease if it is aggravated, or worsened, by the employment.
Who is eligible for workers' compensation?
Most employees who are injured in Iowa, working under contract of hire made in Iowa, or whose employment is principally localized in Iowa, are eligible for benefits if they have a job-related injury. (85.71)
Who chooses the medical care?
The employer provides medical care reasonably suited to treat the employee's injury, and has the right to choose the medical care.
If the employer-retained physician gives a rating of permanent impairment, which the employee feels is too low, the employee does have a right to another examination by a doctor of the employee's choice at the employer's expense. (85.39)
How is medical information obtained?
Any party making or defending a claim for benefits agrees to release all information concerning the employee's physical or mental condition relative to the claim and waives any privilege for the release of such information. The information shall be made available to any party or the party's representative upon request. (85.27)
Who pays the benefits?
Employers subject to the law are required to provide insurance through a private insurance company or qualify as a self-insurer. (85.3, 87.1, 87.11)
If the employer provides coverage by purchasing an insurance policy, the employer pays the insurance premium charges. The insurance company (or adjusting company) pays the workers' compensation benefits to the injured employee.
If the employer is self-insured, the employer (or adjusting company) pays the workers' compensation benefits to the injured employee.
Any employer who fails to provide insurance coverage for eligible employees, as the law provides, may be liable to an employee for either workers' compensation benefits or for damages in a civil action. (87.21)
An employer shall not engage in business without first obtaining insurance covering compensation benefits or obtaining relief from insurance or furnishing a bond. A person who willfully and knowingly does so is guilty of a class "D" felony. (87.14A)