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Workers’ Compensation laws exist in all states and Canada. They are designed so that benefits (both medical and disability income) for the work-related accident, injury, or illness can be paid promptly without the need for expensive legal fees to determine fault. Medical benefits have no dollar or time limits and cash benefits are paid for lost wages due to impairment or disability. In severe cases, medical and vocational rehabilitation benefits may be provided.

A few states exempt churches from Workers’ Compensation coverage and several exempt all nonprofit employers. A few others exempt any employer, including churches, having fewer than two or three employees. However, the majority of states have compulsory participation laws which do not exempt churches.

See Memo #9 - Workers' Compensation Laws and the Local Church for more details.