The commencement of wage replacement benefits under workers’ compensation insurance varies by jurisdiction, but a common provision dictates a waiting period. This signifies a defined duration, typically a few days, following the injury during which an employee is not eligible for these payments. For instance, an injured worker might not receive wage loss compensation for the initial three to seven days of lost work time.
The establishment of a waiting period serves multiple purposes. It is intended to reduce the administrative burden associated with processing minor claims, discourage fraudulent claims for short-term absences, and control the overall cost of the workers’ compensation system. Historically, these provisions were implemented to balance the need to provide income support for legitimately injured workers with the economic realities of maintaining a sustainable insurance program. This arrangement ensures resources are focused on more significant and longer-term disabilities.
