Celebrating 100 Years of Workers’ Compensation
2011 marks the 100th anniversary of the first workers’ compensation laws enacted in the United States. A century ago, Wisconsin became the first state in the nation to provide benefits to workers who were injured on the job. Many states quickly followed with similar legislation, and by the late 1940s, all 48 states and the territories of Alaska and Hawaii had some type of workers’ compensation laws in effect.
We often take workplace safety and employee compensation for on-the-job injuries for granted as we live and breathe this concept every day in our chosen profession. However, things were not always this way. This radical new change came about after years of pain and suffering by immigrant and American workers who labored in factories with sweatshop conditions.
At the turn of the century, the Industrial Revolution had forever changed the way the world produced goods. Society transformed from mainly agricultural and hand-crafted production to one where industry and manufacturing were in control. This industrial expansion resulted in a significant increase in workplace accidents. The only avenue for injured workers to obtain compensation was to sue their employers for negligence. This was a difficult, time-consuming, and costly effort, most often resulting with rulings in favor of the employer.
New York first attempted workers’ compensation legislative changes in 1910, but these were overturned as unconstitutional through appeal on March 24, 1911. A day later, a fire at the Triangle Shirtwaist Factory in New York City claimed the lives of 146 workers, most of them young women. News of this tragedy gripped the nation when it was discovered that the over-crowded garment factory owners had illegally locked all emergency exit doors to prevent workers from stealing or sneaking away during work. These locked doors, along with poorly designed and inadequate fire escapes, hindered escape and rescue efforts and resulted in a high number of preventable deaths and injuries.
The Triangle Shirtwaist Factory tragedy remains one of America’s most deadly workplace events and is credited with the start of legislative reforms to improve workplace safety, building codes, and employee rights. The resulting workers’ compensation no-fault insurance system provided injured workers with compensation for lost wages and medical care at no cost in exchange for relinquishing their right to sue employers for negligence.
Today, an entire specialized industry has evolved to insure, manage, and litigate the workers’ compensation system. Although some flaws still remain, this significant anniversary should remind us all of just how far workplace safety and employee rights have come over the past 100 years.