Michigan Nursing Home Administrator (NHA) Practice Exam

Which statement is true regarding Worker’s Compensation benefits?

1. They are optional for employers

2. They are influenced by employee tenure

3. They are based on statutory requirements

4. They can be modified by employer agreements

The correct answer is: They are based on statutory requirements

Worker’s Compensation benefits are indeed based on statutory requirements established by state laws. Each state mandates that employers provide certain benefits to employees who sustain work-related injuries or illnesses, and these benefits generally cover medical expenses, rehabilitation costs, and a portion of lost wages. The statutory nature of these benefits means that all employers must adhere to the regulations set forth by their respective state’s worker’s compensation laws. In contrast, worker's compensation is not optional for employers who meet the criteria set by their state laws; thus, it is mandatory rather than optional. While employee tenure may influence the amount or duration of certain benefits in specific cases, the foundational structure of worker's compensation is not directly influenced by how long an employee has worked for a company. Additionally, while employers may offer additional benefits beyond what is statutorily required, the actual worker's compensation benefits themselves cannot be modified through employer agreements, as they must comply with the established state regulations.