Compensation Laws


There are in the United States, broadly speaking, two kinds of compensation laws: One is based on the theory that compensation is a tax laid on industry and, therefore, to be collected and paid out by the State, says the Review of Reviews. The other starts with the premise that compensation is a hazard of industry against which the employer may-in many States, must-insure, and that the duty of the State ceases when it has established a proper supervision of insurance to guarantee payment and of settlements to prevent imposition. Expressive of the first theory are the monopolistic State fund laws of Ohio, Washington, Oregon, Nevada, West Virginia and Wyoming. In each of these the State collects the premium (tax) and pays the loss (compensation). In each of the other twenty-five compensation States insurance of compensation is either permitted or compelled, and competition between from two to four methods of insurance allowed.