Social Insurance Programs

Discussion Question 3-1 is comprised of five parts. (A 2-page response is required for the combination of Parts A – E.)

In addition, you must appropriately cite all resources used in your responses and document in a bibliography using APA style.

Scenario. John Smith, a 24-year old male, was employed during the day as a custodian with the Smith Intermediate School. During the evening, he had a part-time job as a sales clerk with the ABC Department Store. On December 15, 2003, while working for ABC Department store, he fell to the floor, injuring his back. The accident happened while he was attempting, during his regular work time, to do a handstand on the arms of a chair. John and his co-workers regularly did physical exercise during their break time, including push-ups and chin-ups. The employer knew of this practice and permitted it. At the time of the accident, John received an average weekly wage of $180 from his job with ABC Department Store and $300 from his job with the Smith Intermediate School. The Workers’ Compensation Board found John to have a 50% earning capacity, and he was determined to have a permanent partial disability.

Answer each of the following questions regarding this scenario. Use your text as a reference, as well as the Internet.

Part A

Did the accident arise out of and in the course of his employment? Give your reasons. (6 points)

Part B

If John were entitled to medical benefits as a result of the accident, which employer would be liable for these benefits?

Part C

Based on the finding of 50% permanent partial disability, what would John’s benefit payment be in a jurisdiction that paid 2/3 of average pre-disability wages? Could both salaries be considered in computing the benefit?

Part D

If this type of injury were to have occurred prior to the enactment of Workers’ Compensation laws, what might the outcome of this case have been? Why?

Part E

What is the theory behind workers’ compensation laws and the general eligibility requirements for coverage?

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