How to Insure Your Income: History of Workers' Comp

Early in the 19th century, an employee seeking damages from an employer for a job-related injury had to prove that the injury resulted from the employer's negligence. More significantly, an employer -- even if negligent -- could invoke certain legal defenses.

After 1900, a growing number of industrial deaths helped to fuel public policy changes. Workers' compensation systems were spreading in Europe, and the concept gained popularity in the United States.

In 1917, a U.S. Supreme Court decision upheld the right of states to enact compulsory workers' compensation laws. Most states quickly enacted the laws.

Employers accepted liability for work-related injury or death, regardless of fault. In most situations, employees no longer have to prove negligence and have given up their right to file suit -- but they are now entitled to standard benefits.

Today, though every state has some exempt jobs, about 90 percent of the nation's employees fall under workers' compensation laws.