How does Workers' Compensation primarily protect employers?

Workers' Compensation primarily protects employers by shielding them from negligence lawsuits. The fundamental principle of Workers' Compensation is that it creates a no-fault system for workplace injuries. Under this system, employees receive benefits for work-related injuries or illnesses regardless of who is at fault. In exchange for this guaranteed compensation, employees are generally prohibited from suing their employers for negligence related to those injuries. This protection helps employers manage legal risks and potential financial liabilities that could arise from personal injury lawsuits, ensuring that they are not continuously exposed to litigation concerning workplace safety incidents.

In contrast, limiting employee claims for compensation, providing training for workplace safety, and offering tax breaks to businesses serve different purposes. While they may enhance workplace safety or financial conditions, they do not fundamentally alter the employer's liability in the way that the protections against negligence lawsuits do.