Certified Rehabilitation Counselor Practice

Workers' compensation is primarily regulated by...

1. The federal government

2. Each state

3. Insurance companies

4. Corporate policies

The correct answer is: Each state

Workers' compensation is primarily regulated by each state because it is governed by state law rather than federal law or corporate policy. Each state has its own workers' compensation system, which establishes the rules and processes for addressing workplace injuries and illnesses, including the eligibility requirements for benefits and the procedures for filing claims. This state-based regulation allows for variations in coverage, benefits, and procedures tailored to the specific needs of the state's workforce and the particular economic conditions within that state. The federal government does have some involvement in certain industries, such as the Longshore and Harbor Workers' Compensation Act, but the overarching framework for workers' compensation is largely left to the states. Insurance companies play a role in providing coverage and managing claims, but they do so within the regulatory framework set by state laws. Similarly, corporate policies may dictate how an organization handles claims internally, but they do not establish the legal foundation or requirements for workers' compensation benefits.