To understand this case, you need a brief background on workers’ compensation law.
Workers’ Compensation is the great compromise between capital and labor (take note, Governor Walker). In the late 19th century, workers who were injured on the job had only one course of action—to sue the owner for creating a workspace or job that was negligently unsafe. The problems with this system were multiple. First of all, negligence can be difficult to prove. You must establish that the owner owed the employee a duty of care, that the employer breached that duty of care, that the breach proximately caused injuries, and that the employee suffered actual damages. You can see where the problems might arise. What if the owner kept a safe workspace and the work was inherently dangerous under the best conditions? What if another employee’s negligence caused the accident? What if the accident was a cumulative injury caused by the employment over a number of years? There were also practical considerations. Negligence cases cost money, and injured workers often do not have the resources to mount such a case. On the employer’s side, these cases were a nightmare that took large amounts of resources to defend and occasionally resulted in huge verdicts against the company.
So the two sides came together, and they created workers’ compensation. Under workers’ compensation laws, all employers must purchase insurance to cover their workers. If a worker becomes injured during the course of her employment, she is entitled to workers’ compensation, which includes medical damages, lost wages, and compensation for any partial or total impairment the employee suffers as a result of the injury. The trade-off is employees do not have to prove negligence—only that the injury occurred as a part of work—and employers cannot be sued for any additional damages in court. It is a good system because employees know they will be covered if they get injured in the course of employment, and companies can limit the cost of doing business to a predictable annual insurance payment.