Mississippi workers’ comp insurance laws protect employees and employers. In many industries, there is no way to escape from the risk of workplace injuries. Therefore, Mississippi (like other states) obligates employers to provide the safest possible working environment. 

Protecting workers when an accident or on-site illness occurs is part of an employer’s obligation.

Typically, the workers’ compensation process enforcement and management falls to a company’s HR manager. As such, all HR managers must thoroughly understand the worker’s compensation laws of Mississippi. 

By understanding worker’s compensation coverage and knowing how to process claims, HR managers can protect the interests of employees and employers. Moreover, by following the rules of worker’s compensation to the letter, HR managers can contribute to a safer workplace. 

What Is Worker’s Compensation?

Worker’s compensation is a mandatory insurance system in 49 of the 50 states. Texas is the only exception, as the state does not mandate businesses to purchase this insurance. 

Worker’s compensation insurance provides financial and medical benefits to employees who suffer work-related injuries or illnesses. 

However, as with most insurance plans, workers’ compensation has a caveat. Employees are given this coverage in exchange for their right to sue their employers for damages. 

In Mississippi, employers with five or more employees must purchase worker’s compensation insurance. Several exemptions apply, including agricultural workers, employees of specific non-profit organizations, and domestic workers. 

HR managers must know which exemptions apply and when to ensure full compliance. 

Businesses that take out workers’ compensation insurance enjoy several benefits. Not only are they immune from lawsuits, but workers’ compensation demonstrates to workers that a company is concerned about their well-being.

Workers feeling valued and cared for fosters a more productive work environment and improves employee loyalty. If a workplace accident does happen, the workers’ comp process is typically efficient enough to ensure minimal downtime. 

Who Is Covered by Workers’ Compensation?

The majority of Mississippi employees are protected under worker’s compensation insurance. Several guidelines determine eligibility for coverage. 

Generally, full-time employees are all covered by workers’ comp. This includes all workers employed consistently according to a work schedule.

Part-time workers are also usually covered, and coverage extends to those employed less than full-time but still have regular work hours. 

Workers’ compensation does not usually cover independent contractors. This is because of less control over work done, tools, and equipment. 

However, it is important to note that it can be challenging to distinguish between independent contractors and part-time employees. In some cases, this is subject to legal interpretation. 

Temporary workers may be covered under an employment agency’s workers’ compensation policy. If they are transferred from the agency to the staff complement of the company, they may then fall under the company’s worker’s compensation insurance. 

HR managers must classify workers correctly to ensure each one has the appropriate coverage. Discrepancies in classification may result in legal and financial consequences for the business. 

An HR manager may benefit from seeking legal advice if they need help classifying certain employees. 

Worker Classification

As mentioned, independent contractors are not usually covered under workers’ compensation. However, several factors must be considered when determining independent contractor status. This includes:

• Control: Courts and government agencies may consider the degree of control the employer has over a worker’s workday and schedule.
• Tool and equipment ownership: Whether workers use their own tools and equipment must also be considered.
• Payment: A worker’s payment structure impacts their classification. Payment structures are usually by the hour, project, or piece. It should also be determined whether they receive any benefits, including time off. 
• Risk: Classification also depends on whether the employer or the worker assumes the financial risk for a project. 

If these factors are left out of the classification process, HR managers are likely to make mistakes. These mistakes may lead to back taxes, interest, and penalties. Injured independent contractors may also be able to file lawsuits against the employer since they can bypass the workers’ compensation system. 

What About Temporary Workers?

Coverage for temporary workers may be shared between the company and the staffing agency. Elements that affect classification include the control exercised by the agency and the company and the contract terms between the company and the agency.

Coverage Provided 

Workers’ compensation offers different types of coverage, depending on the injury sustained. Medical expenses are covered for injuries that require surgery or ongoing medical treatment and rehabilitation. 

Workers’ comp also includes disability benefits for those who cannot work anymore due to a workplace injury or illness. 

Furthermore, there is a death benefit, which provides financial assistance to the families of employees who died after a workplace accident.

Workers’ Compensation Claims Process

When an employee sustains an injury on the job, it must be reported to the immediate supervisor and the HR manager. 

The employer should allow the employee to visit an authorized healthcare provider for treatment. The HR manager will then file a claim with the Mississippi Workers’ Compensation Commission. 

The claim will be investigated to determine applicable benefits and eligibility. Based on the outcome of the investigation, the insurance carrier will pay out the claim. 

Preventing Workplace Injuries

Prevention is always better than cure, especially regarding workplace injuries. HR managers and the rest of management must ensure that they take a proactive approach to workplace safety.

This means regular safety training for all employees, including hazard identification and control. In the event of a workplace accident, return-to-work programs should also be in place. This will allow injured employees to return to work safely. 

HR Manager’s Role in Workers’ Compensation

HR managers must create and enforce workplace safety policies. They must also communicate with insurance carriers and employees during the claims process to ensure everything stays on track.

Companies often rely on HR managers to educate employees about workplace accidents and compensation benefits. HR managers must also keep accurate records of all injuries and related safety programs. 

At the same time, HR managers are instrumental in reporting injuries timeously and preventing discrimination against injured employees. 

By working with insurance carriers and employers, HR managers can make the workplace safer while protecting all relevant parties.  

Guest writer.