By 1908,the United States was the only industrial nation in the world that lacked workerscompensation insurance.Americas injured orkers could sue for damages in a court of law,but they still faced a number of tough legal barriers.For example,employees had to prove that their injuries directly resulted from employer negligence and that they themselves were ignorant about potential hazards in the workplace.The first state workers compensation law in the country passed in 1911,and the program soom spread throughout the nation.
After World War Ⅱ,benefit payments to American workers did not keep up with the cost of living. In fact, real benefit levels were lower in the 1970s than they were in the 1940s,and in most states the maximum benefit was below the poverty level for a family of four.In 1970,President Richard Nixon set up a national commission to study the problems of workers compensation.Two years later,the commission issued 19 key recommendations,including one that called for increasing compensation benefit levels to 100 percent of the states average weekly wages.
In fact,the average compensation benefit in America has climbed from 55 percent of the states average weekly wages in 1072 to 97 percent today.But, as most studies show,every 10 percent increase in compensation benefits results in a 5 percent increase in the numbers of workers who file for claims.And with so much more money floating in the workers compensation system,its not surprising theat doctors and lawyers have helped themselves to a large slice of the growing pie.
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