Which statement best reflects the 'great trade off' concept in workers' compensation?

Which statement best reflects the 'great trade off' concept in workers' compensation?

• A. Employees can always sue the employer in addition to receiving workers' compensation benefits
• B. Workers' compensation allows suing only for punitive damages
• C. The great trade off means employees could no longer sue after workers' compensation
• D. The employer must sue the employee for recovery of benefits

Answer: (C)

The concept being tested is the exclusive remedy in workers’ compensation. In this system, employees receive guaranteed, no-fault benefits for work injuries in exchange for giving up most rights to sue their employer for damages. So, the statement that best reflects the great trade-off is that employees can no longer sue after accepting workers’ compensation benefits—the core idea of the exclusive remedy. There are limited exceptions (such as third-party fault or intentional misconduct by others), but the general rule is that the employer is shielded from most civil lawsuits in exchange for providing predictable benefits. The other options misstate this relationship: employees aren’t allowed to sue in addition to receiving benefits in the typical scenario, punitive damages aren’t the mechanism of workers’ compensation, and the employer isn’t the one suing the employee for recovery of benefits.

The concept being tested is the exclusive remedy in workers’ compensation. In this system, employees receive guaranteed, no-fault benefits for work injuries in exchange for giving up most rights to sue their employer for damages. So, the statement that best reflects the great trade-off is that employees can no longer sue after accepting workers’ compensation benefits—the core idea of the exclusive remedy. There are limited exceptions (such as third-party fault or intentional misconduct by others), but the general rule is that the employer is shielded from most civil lawsuits in exchange for providing predictable benefits. The other options misstate this relationship: employees aren’t allowed to sue in addition to receiving benefits in the typical scenario, punitive damages aren’t the mechanism of workers’ compensation, and the employer isn’t the one suing the employee for recovery of benefits.