Workers' compensation benefits are regulated by which entity?

Workers' compensation benefits are primarily regulated by state governments because the administration and oversight of these benefits are determined by state law. Each state has its own workers' compensation program, which sets forth specific rules and guidelines regarding eligibility, benefits, and claims processes. This framework reflects the states’ varying economic conditions and labor markets, allowing them to tailor their workers' compensation systems to better meet the needs of their workforce.

The federal government does not directly administer workers' compensation benefits; instead, it provides support through certain federal programs (like the Federal Employees' Compensation Act) that address specific situations. Insurance companies play a role in providing coverage for workers' compensation, but they operate under the regulations established by state governments. Healthcare providers are involved in the treatment aspect of workers' compensation but do not regulate the benefits. Therefore, the state government's role is fundamental in ensuring that the workers' compensation system operates effectively and in accordance with the law.