Compensation Conditions in Three American States

A comparative analysis of working conditions in the context of workers’ and employers’ regulatory compensation requirements by state is conducted to determine the friendliest location to locate the next production facility. The three states chosen for discussion are Alaska, Virginia (the current location), and New York. As can be seen from the table below, each state sets unique terms for workers’ compensation benefits in the event of a work-related injury. The differences are in the amount of compensation, the minimum and maximum limits, the period of the first payment, the amount of compensation in the event of a fatal injury to an employee, and the number of benefits related to temporary, partial, or total disability. Notably, of the three states, New York is the only one whose laws imply payments to employees even for injuries sustained outside of work (NYS, n.d.). A comparative analysis based on the information gathered shows that New York State appears to be the friendliest for injured workers because it has the shortest registration period to establish benefits, and a multiple-benefit system, which implies a more significant benefit to workers who are injured but survivors. From an employer’s perspective, however, Alaska is the friendliest state for several reasons at once. First, there is a maximum length of time an individual is incapacitated for recording benefits in Alaska, which reduces employer compensation costs. Second, Alaska has rigidly enforced benefit limits, allowing reasonable compensation to be paid to employees in various positions, including senior management positions. In addition, in the event of a fatality, the employer must pay a lump sum payment, which is expected to be less in the long run than regular payments to the deceased employee’s family members from the other two states. In terms of available resources, New York State also offers more informational study materials for the employer, which supports the choice made (Table 2).

Criterion	Alaska (DOF, 2012)	Virginia (Commonwealth of Virginia, n.d.)	New York (NYS, n.d.)
Deadline for application after injury	30 days	30 days	30 days
Payment rate	80%	66.6% (VWCC, n.d.)	66.6% (VWCC, n.d.)
Maximum amount of payment	No more than 120% of the state average weekly payout	Not reported	$1,125.46/week
Minimum amount of payment	At least 22% of the state average weekly payout	Not reported	$150/week
Period of nonpayment	First three days if sick <28 days	First three seven days if sick <21 days	First three seven days if sick <14 days
Period of first payment	After 14 days	After 7 days	After 14 days
Disability benefits	Four tiers depending on injury sustained	Two tiers depending on injury sustained	Multiple classification system even for injuries outside of work
Compensation in case of death	$10,000 for funeral and $5,000 to each family member	$10,000 for funeral expenses, transportation costs up to $1,000 and 66.6% of the deceased’s salary to each family member regularly	66.6% of the deceased’s regular wage to each family member, plus $6,000 for the funeral (NYCCD, n.d.)
Payment of related expenses	Yes	Yes	Yes
Penalties for employer	Yes	Yes	Yes
Determination of employees	Not reported	Regular and seasonal employees, volunteers, family members involved in the business	Not reported

Criterion	Alaska (DOF, 2012)	Virginia (Commonwealth of Virginia, n.d.)	New York (NYS, n.d.).
Information materials	Yes	Yes	Yes (most of all)
Clarification of employer rights	Yes	Partial	Yes
Consideration of an independent contractor as an employee	Depends on the type of contractor and the nature of the services provided	Yes	Depending on the kind of contractor and the services being rendered

References

Commonwealth of Virginia. (n.d.). Workers’ compensation insurance information for employers. Web.

DOF. (2012). Workers’ compensation and you. Web.

NYCCD. (n.d.). Overview of death benefits in New York workers’ compensation. NY Workers’ Compensation Defense. Web.

NYS. (n.d.). Workers’ compensation. Workers’ Compensation Board. Web.

VWCC. (n.d.). Injured worker’s benefits guide. Web.