Workers Compensation in Vermont is funded by an assessment on employers. The amount of this assessment reflects the relative hazard of a job. This assessment is calculated by taking the average of the prior three years’ premiums and outlays. These costs are then allocated to each insured and self-insured employer proportionally to payroll and indemnity benefits.
This assessment is based on the Workers’ Compensation Assessment Rate and is set by statute. Employers who receive benefits from the workers’ compensation system should become familiar with its benefits and limitations, as well as the role of IMEs. The state’s workers compensation laws also allow self-insurance. In the state, the first self-insurance authorities were authorized in 1936. The legal unit aims to develop and implement new regulations and rules for the industry. They do not accept any insurance benefit. In 2011, they processed 275 direct payment applications and 957 additional reimbursement applications.
The laws governing workers’ compensation coverage in Vermont are found in Title 21, Chapter 91, and the rules of the Department of Labor. These rules are divided into 110 sections. Rule 2 outlines the definitions of terms used in this law. The rules also refer to Supreme Court decisions that have defined and changed the state’s workers compensation laws.
The Workers’ Compensation Commission is composed of two members appointed by the President of the Senate and two members of the House of Representatives. It also has two members appointed by labor and management organizations. The first-named member is chair of the commission.