Final answer:
Workers compensation is a government-sponsored and employee-financed system that provides benefits to workers who suffer an injury on the job. Employers contribute a portion of the salaries they pay into funds that are used to cover medical expenses, lost wages, and rehabilitation costs for injured workers.
Step-by-step explanation:
Workers compensation is a government-sponsored and employee-financed system that provides benefits to workers who suffer an injury on the job.
Employers are required by law to pay a small percentage of the salaries they pay into funds, typically run at the state level. These funds then pay benefits to injured workers, which may include medical expenses, rehabilitation costs, and lost wages.
For example, if a construction worker falls from a ladder and breaks their leg, they can file a workers' compensation claim. The funds from the workers' compensation system will cover their medical expenses, provide financial support for their lost wages, and help with any necessary rehabilitation.