Legally Required Benefits and Discretionary Benefits
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Legally Required Benefits and Discretionary Benefits
Legally required benefits are mandated by the following laws: the Social Security Act of 1935, various state workers’ compensation laws, and the Family and Medical Leave Act of 1993. All provide protection programs to employees and their dependents.
The Social Security Act of 1935
The economic devastation of the Great Depression era prompted the federal government into action, because most people used up their life savings to survive and opportunities for gainful employment were scarce. The Social Security Act of 1935 set up two programs: a federal system of income benefits for retired workers and a system of unemployment insurance administered by the federal and state governments. Amendments to the Social Security Act in 1965 established the disability insurance and Medicare programs which serves nearly all U.S. citizens aged at least 65, as well as disabled Social Security beneficiaries, by providing insurance coverage for hospitalization, convalescent care, major doctor bills, and prescription drug coverage. Today, Medicare serves nearly all U.S. citizens aged 65 or older by providing insurance coverage for hospitalization, convalescent care, and major doctor bills (Martocchio, 2010).
Workers’ Compensation
Workers’ compensation refers to state-run insurance programs that are designed to cover medical, rehabilitation, and disability income expenses resulting from employees’ work-related accidents. (Martocchio, 2010). Workers’ compensation insurance came into existence during the early decades of the 20th century, when industrial accidents were very common and workers suffered from occupational illnesses at alarming rates. During the early years of industrialization of the U.S. economy, no laws required employers to ensure the health and safety of employees. Seriously injured and ill workers were left with virtually no recourse because social insurance programs to protect such workers were...
Legally required benefits are mandated by the following laws: the Social Security Act of 1935, various state workers’ compensation laws, and the Family and Medical Leave Act of 1993. All provide protection programs to employees and their dependents.
The Social Security Act of 1935
The economic devastation of the Great Depression era prompted the federal government into action, because most people used up their life savings to survive and opportunities for gainful employment were scarce. The Social Security Act of 1935 set up two programs: a federal system of income benefits for retired workers and a system of unemployment insurance administered by the federal and state governments. Amendments to the Social Security Act in 1965 established the disability insurance and Medicare programs which serves nearly all U.S. citizens aged at least 65, as well as disabled Social Security beneficiaries, by providing insurance coverage for hospitalization, convalescent care, major doctor bills, and prescription drug coverage. Today, Medicare serves nearly all U.S. citizens aged 65 or older by providing insurance coverage for hospitalization, convalescent care, and major doctor bills (Martocchio, 2010).
Workers’ Compensation
Workers’ compensation refers to state-run insurance programs that are designed to cover medical, rehabilitation, and disability income expenses resulting from employees’ work-related accidents. (Martocchio, 2010). Workers’ compensation insurance came into existence during the early decades of the 20th century, when industrial accidents were very common and workers suffered from occupational illnesses at alarming rates. During the early years of industrialization of the U.S. economy, no laws required employers to ensure the health and safety of employees. Seriously injured and ill workers were left with virtually no recourse because social insurance programs to protect such workers were...