If A Company Goes Under, Do Employees Still Receive Workers Comp?

First, what is worker’s comp? If an employee experiences a slip and fall that causes an injury that could keep them from working, they can receive workers compensation, which is a state-mandated insurance program available in Provo and the rest of America.

This program, which can vary from state-to-state, is used to protect people in the workplace from themselves, other employees, employers or even customers. It is also applicable to illness if it has been caused by workplace conditions. Mesothelioma is an example of illness caused by working conditions. 

Worker’s compensation is also a way for employers to protect themselves. If an employee experiences an injury due to a slip and fall accident and accepts workers compensation, their lawyer has no right to sue the employer for damages.

When The Company Goes Under

What happens when a Provo-area company goes out of business while someone is receiving worker’s compensation? Lucky for them, a lawyer wont be necessary. Whether the business is a startup that lost all of its capitol or a factory that closed after the injury, the employer has always paid into a state insurance program. 

Although the employer didn't exactly pay the specific amount of one worker’s injury, all businesses are required to pay into a worker’s compensation on a weekly or monthly basis depending on the state.

Things To Be Wary Of

Even if the company is no longer in existence, an employee of the now-defunct company will still receive compensation from the states worker’s comp fund. FindLaw.com explains a few issues that can arise out of this situation. First, if a claim is still being investigated while the company goes under, it can be difficult to get information from former employers. Second, worker’s comp can be based on ability to return to work which can be difficult for the insurance program to determine if the company no longer exists. 

While there can be some road bumps in this situation, an employee is entitled to worker’s compensation. If you are denied that right, hire an experience Provo-area slip and fall lawyer immediately. 

Ian Carry is a legal writer reporter for Fusion 360, an SEO and content marketing agency. Information provided by Robert J Debry. Follow on Twitter