Workers’ Compensation Insurance and Why it is Required!

One of the legal requirements that local and state presidents and treasurers must comply with is obtaining workers’ compensation insurance. Since local and state unions are treated as small businesses under state law, each local union that has employees must help fund the state’s workers’ compensation program. These employees can be full-time or part-time union officers, stewards, or members, as well as non-postal office staff. If they are injured while working for the union, then they are entitled to le for state workers’ compensation benefits. It is state law!

Workers’ compensation is an insurance program that is required in almost every state. It requires employers to pay for insurance and in return the union is covered for work-related accidents and injury. While an officer or steward would be covered by the federal workers’ compensation while on official union time at the post office or while on official travel between post offices, when they are being compensated for work for the union, they must be covered under the state program. Workers’ compensation insurance covers compensation for lost wages and earning power, reimbursement for medical treatment, and benefits paid to dependents in the event of a worker’s death. It is important to note that the qualifications, exemptions, exclusions, limitations, and mandates differ from state to state.

The type of policy and rate of premiums for workers’ compensation insurance is determined by each state. Your state may require coverage from what is known as the State Fund, which will collect the premium from the union. There are currently four states (Ohio, North Dakota, Washington, and Wyoming) that require coverage through the State Fund. If your state does not require purchasing coverage from a State Fund, then coverage can be purchased from private insurance companies authorized by the state. Workers’ compensation is regulated on the state level, and each state has its own requirements and penalties. Each state government sets the premiums and benefits structure, but the actual insurance coverage is provided by the standard insurance companies and obtained through insurance agents.

Never assume that you do not need to have workers’ compensation insurance. Failure to maintain coverage can result in severe fines. State fines vary. In Massachusetts the ne is $100 per day, while in Michigan it is $1,000 per day. In Louisiana, there is a $250 ne for the first offense and $500 for each subsequent offense. These are examples of the varying severity of fines for not maintaining coverage. The law does not exempt unions from their responsibilities. Local and state officials can contact Annette August-Taylor, Executive Assistant to the Secretary-Treasurer, by calling (202) 842-8538 or emailing aaugust@apwu.org if they have questions or need assistance with obtaining coverage in their state.

2024 IRS Standard Mileage Rate

Effective Jan. 1, 2024, the new standard mileage rate increased to 67 cents per mile for business miles driven. Please ensure that the correct rate is applied when compensating for mileage reimbursement requests. The documents required for mileage reimbursement submissions are the mileage log sheet and a copy of MapQuest or Google Maps.

2024 APWU 27th Biennial Convention July 15-18, 2024, Detroit, MI

Save the dates! Local and state officials should plan to attend the APWU 27th Biennial Convention held July 15-18 in Detroit, MI. Information pertaining to the Convention, Pre-Convention Workshops, and Division Conferences is located in the event section of the APWU webpage. ■