Which statement about workers' compensation is true?

• A. It is a system of benefits provided by law to employees who experience work-related injuries or occupational diseases, generally regardless of fault.
• B. It only covers injuries that occur outside of work
• C. It is optional in most states
• D. It is funded entirely by employees

Answer: (A)

Workers’ compensation is a legally required program that provides benefits to employees who suffer work-related injuries or occupational diseases. It operates on a no-fault basis, so workers receive benefits regardless of who was at fault. This design ensures prompt medical care and wage replacement while reducing the need for lawsuits against the employer. Coverage typically applies to injuries or illnesses that arise out of and occur during employment. It is generally mandatory for employers in most states and is funded by employer premiums (or state funds), not by employees themselves. That combination—no fault, employer-funded coverage for work-related injuries—is why this statement is true.