Sean Callagy - Attorney and Entrepreneur: history

The 1900’s.

The purpose of this post is to help assist healthcare providers and owners with questions they have concerning their business or relevant knowledge in the field. The Callagy Law team is knowledgeable in many law practice areas and will frequently post topics ranging from Medical Revenue Recovery, PIP, Workers Compensation, and Commercial Insurance. We hope to have this blog shed a light on many common questions.

Although Workers’ Compensation reform took root in Europe during the late 19^th century, it would take several decades later before the United States adopted the concept. During the 1900s, a group of authors known as the “muckrackers” focused their writing on the experiences of the common man, government and business corruption, and social change. One of these muckrackers, Upton Sinclair, wrote The Jungle. The novel detailed the deplorable working conditions of a slaughterhouse in Chicago. Although the intention of the book was to call attention to the need to improve working conditions, its immediate effect on the public led to the passage of the Food and Drug Act of 1906.

Nevertheless, public support for workers’ compensation reform continued to increase during the 1900s. Several states made attempts to pass comprehensive workers’ compensation acts. In 1908, President Taft put into law the United States’ first workers’ compensation system for workers involved in interstate commerce. The decentralization of labor law in the United States created a barrier to nationwide reform. Manufacturers argued that although they were ready for change, state by state regulation would create unfair competitive advantages. In 1910, a conference was held in Chicago to address this issue. Representatives from all industrial states gathered to create a uniform set of compensation laws. The first of these laws was passed in Wisconsin in 1911 and expanded to most other states shortly after.

In its inception, workers’ compensation received criticism from medical professionals as an attempt to control fees. However, this opinion changed when Social Security Disability Insurance was created during the 1930s. The program generated a greater demand for medical services and proved to be profitable for the medical profession.

The workers’ compensation system in the United States follows the Prussian model of the late 19^th century. It is a no fault system that provides security for employees and shields employers from tort liability. An injured worker may sue third parties responsible for their injuries, but recovery from these suits must compensate the workers’ compensation carrier. Workers’ compensation plans are either funded by the employer through an insurance carrier or self-insurance account. Although the Workers’ Compensation system has remained largely unchanged through the decades, in 1990, the American with Disability Act (ADA) required employers to provide “reasonable accommodation” for disabled workers.

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A History of Workers’ Compensation: Part II | Callagy Law #CallagyLaw, #History, #Law, #LegalInformation, #LegalQuestions, #SeanCallagy, #WorkersComp

Workers’ Compensation, Defenses and the History Behind It All

The following article was written by Callagy Law’s Legal Team, and will focus on many common questions and concerns surrounding new developments, legal matters, and other procedures within the field of healthcare law Medical Revenue Recovery, PIP, Workers Compensation, and Commercial Insurance. Our mission is to answer any questions and give knowledge to many different aspects of these matters.

The history of workers’ compensation law has its roots in Sumaria, circa 2050 B.C., where the laws of King Ur-Nammu compensated workers for injuries to specific body parts. Many ancient civilizations such as the Babylonians, Greeks, Romans, Arabs and Chinese followed suit and also provided scheduled compensation for worker injuries. Under these systems, compensation was commensurate to the injured body part.

During the middle ages, the ancient systems of workers compensation gave way to the whim of the feudal lord. Payment for injury was left entirely to the discretion of the noble class. The development of the common law system in the 17^th century provided workers with some reprieve, however, they were still subject to three anti-worker defenses: 1) Assumption of Risk; 2) Fellow Servant Rule and; 3) contributory negligence.

Under the “assumption of the risk” defense, employees assumed the risks inherit in their jobs. Although, employers were required to provide industry standard safety measures, worker safety was an afterthought in many industries prior to the 20^th century. Furthermore, many workers were forced to sign “worker’s right to die” contracts as a condition of employment. These contracts forfeited the worker’s right to sue for injury. The “fellow servant rule” held employers not liable if the injury was caused in part by the negligence of another worker. Under the contributory negligence defense, an employee was not liable if the injury was caused by any negligent act on the part of the injured worker. These defenses were known as the “unholy trinity” and made recovery practically impossible. Additionally, a worker’s only recourse was through an expensive court system that was out of reach for the common man.

The framework of the modern worker’s compensation system does not come about until the late 19^th century from an unexpected source. Otto von Bismarck was chancellor of the Prussian empire during the latter half of the 19^th century. His political policies led to the persecution of opposition parties such as the Marxists and Socialists. However, in order to prevent rebellion, Bismarck adopted some socialist programs that expanded protection for workers. In 1884, he created Workers’ Accident Insurance. An important advancement in Bismarck’s reform was that the system was the exclusive remedy for workers’ compensation matters.

By the end of the century, other European nations adopted the Prussian workers’ compensation model. In the 1880s, the United Kingdom abolished the unholy trinity of defenses. However, “right to die” contract still prevented significant progress. It was not until 1894 that the United Kingdom adopted the Prussian no fault system. Change in the United States was still a decade away.