A.  WHAT ARE THE ADVANTAGES OF WORKER'S COMPENSATION INSURANCE?

    The advantages of worker's compensation insurance are numerous.  Here are some of the more important ones:

• In case of injury or death to an employee on the job, the employer is protected against any suit by the employee, his legal representative, husband or wife, or anyone otherwise entitled to recover damages at law from the employer on account of such injury or death.
• The employer knows in advance just how much the coverage will cost and can budget this expense throughout the year.
• Carrying worker's compensation insurance reduces costly litigation and provides a speedy, simple and inexpensive procedure for payment of compensation, regardless of who is at fault.
• Worker's compensation is a fair and just method of determining compensation, based on wages paid and the extent of the injury.
• Immediate medical treatment is provided to the injured employee, for as long as it is needed.
• The employer has subrogated his liability to the insurance carrier insuring his liability, and except for part 'L' of this pamphlet, has discharged his obligation thereby.

B.  WHO IS REQUIRED TO COMPLY WITH THE GUAM WORKER'S COMPENSATION LAW?

    Every individual, partnership, association or corporation carrying on any employment, regardless of the number of employees, except for casual employees employed not for the purpose of the employer's trade or business.

C.  IS THERE A PENALTY FOR NOT COMPLYING WITH THE WORKER'S COMPENSATION LAW?

    YES! An employer who has been given notice of his violation of the law or who has failed to secure such compensation shall be charged with a misdemeanor and, upon conviction, may be punished by a fine of not more than $1,000 or by imprisonment of not more than one (1) year, or both.

D.  HOW DOES AN EMPLOYER COMPLY WITH THE WORKER'S COMPENSATION LAW?

There are ONLY two (2) ways to comply with this law:

1. By insuring and keeping insured the payment of such compensation with any stock corporation or mutual association authorized by the Commission to transact the business of worker's compensation insurance in Guam.
2. By obtaining and keeping in force guarantee insurance with any company authorized by the Commission to do such business in Guam.

E.  WHAT PARTICULAR METHOD OF COMPLYING IS GENERALLY USED?

    Most employers comply by purchasing a worker's compensation policy from an insurance company of their choosing.  Every employer complying with the Worker's Compensation Law must keep posted in a conspicuous place, a notice of such compliance in accordance with a form prescribed by the WCC.  This form is issued by the WCC upon presentation of a current workers' compensation policy coverage card.

F.  DO PART TIME WORKERS COUNT AS EMPLOYEES IN DETERMINING LIABILITY OF AN EMPLOYER UNDER THE LAW?

    Yes, as do student workers and any member of the employer's family who are employed full time or part time.

G.  ARE "CASUAL" EMPLOYEES COUNTED AS EMPLOYEES, AND ARE THEY ENTITLED TO THE BENEFITS OF THE LAW?

    YES, unless their employment is both "casual" and not in the course of the trade, business, profession or occupation of the employer.  Maintenance, repair, painting, cleaning and the like are "in the course" of business because the business could not carry on without them, and because they are an expectable, routine, and inherent part of carrying on any enterprise.

H.  IS A GENERAL CONTRACTOR LIABLE FOR THE PAYMENT OF COMPENSATION TO EMPLOYEES OF ALL SUBCONTRACTORS?

    YES, except to employees of a subcontractor who has secured such payment on his own behalf.  The subcontractor himself would not be covered under the general contractor's insurance unless such coverage is specifically provided in an endorsement of the policy or clearly understood by the insurance company and the assured.  A subcontractor is not liable for the payment of compensation to employees of other subcontractors on such contract work and is not protected by the exclusiveness of liability provisions of the law from suit on account of injury to an employee of another subcontractor.

I.  IS THERE A SUBSTITUTE INSURANCE FOR WORKER'S COMPENSATION?

    There is positively NO SUBSTITUTE for worker's compensation insurance!

J.  WHAT HAPPENS TO AN EMPLOYER WHO IS LIABLE FOR WORKER'S COMPENSATION AND FAILS TO COMPLY WITH THE LAW?

1. Upon conviction, he SHALL be fined not to exceed $1,000 or imprisoned not more than one (1) year, or both.
2. An injured employee, or his legal representative, in case death results from the injury, may sue him at law or in admiralty for damages, and he cannot defend such suit on the grounds that the injury was caused by the negligence of a fellow servant, nor that the employee assumed the risk of his employment, nor that the injury was due to the contributory negligence of the employee.
3. He may be required to pay compensation under the terms of the Worker's Compensation Law if an injured employee or his legal representative, in case death results from the injury, elects to claim compensation instead of bringing suit at law for damages.

K.  ARE ACCIDENT REPORTS REQUIRED BY LAW?

    YES.  The employer must file a report of the injury with his insurance carrier and with the Office of Worker's Compensation within ten (10) days of learning of the injury, even if the employee does not lose any time from work or does not receive immediate medical treatment.

L.  IS THERE ANY PENALTY FOR FAILURE TO FILE AN ACCIDENT REPORT?

    YES.  Any employer or insurance carrier who fails or refuses to send any report required of him by the Worker's Compensation Law within 10 days of knowledge of such accident shall be subject to a civil penalty not to exceed $500 for each such failure or refusal.

M.  HOW IS THE PREMIUM ON WORKER'S COMPENSATION INSURANCE DETERMINED?

    The premium is determined by applying a hazard rate approved by the Insurance Commissioner according to the type of business insured, to the amount of the employer's annual payroll.

N.  CAN THE EMPLOYEES BE ASSESSED FOR ANY PART OF THE PREMIUM?

    NO! Not under any circumstance.

O.  WHAT INJURIES TO EMPLOYEES ARE COVERED?

    The law covers all accidental injuries and occupational diseases arising out of and in the course of employment, such diseases or infections as naturally or unavoidably result from such injuries, and death resulting therefrom.  No compensation is payable, however, if the injury was caused solely by the intoxication of the employee, or by his willful intention to injure or kill himself or another.

P.  WHAT IS THE EMPLOYER'S RESPONSIBILITY FOR MEDICAL TREATMENT?

    The employer shall furnish to the injured employee such remedial treatment, care, and attendance under the direction of a qualified physician or surgeon, or other recognized practitioner, nurse or hospital, as the nature of the injury or the process of recovery may require, including medicines, crutches, artificial limbs and other apparatus.

Q.  WHAT HAPPENS IF THE EMPLOYER FAILS TO PROVIDE MEDICAL CARE?

    If the employer fails to provide medical care after request or neglects to provide it after knowledge of the injury, the injured employee may secure medical treatment at the expense of the employer.

R.  WHEN IS COMPENSATION PAYABLE?

    No compensation is allowed for the first 3 days of disability, unless the disability exceeds 14 days or the fact and the date of the disability are supported by a physician's certificate, then compensation is allowed from the beginning of the disability.  The employee is entitled to the medical benefits from the time of the injury.  The first installment is due on the 14th day after the employer learns of the injury or death, and subsequent installments may be paid weekly, bi﷓weekly, or semi﷓monthly thereafter or upon the order of the Commissioner.

S.  IS THERE A PENALTY FOR DELAY?

    YES.  If any installment of compensation payable without an award is not paid within 14 days after it becomes due, there shall be added to such installment an amount equal to 10% thereof ﷓﷓ unless the employer has filed notice to contest the right to compensation, or unless the delay is excused by the WCC on the ground that it was due to conditions over which the employer had no control.

T.  ARE THE PAYMENTS OF COMPENSATION RELATED TO THE AVERAGE WEEKLY WAGE (AWW)?

    Yes.  The weekly rate is 66-2/3 per cent of the employee's AWW subject to a maximum of $250 (effective for injuries occurring on or after 12/30/89)

U.  WHO MAKES THE DECISION ON A DISPUTED CLAIM?

    A decision is made by the Commissioner through the issuance of a COMPENSATION ORDER.  When that decision is disputed, a formal hearing may be requested before the Commission.  If that decision is disputed, an injunction suspending or setting aside, in whole or in part, the enforcement of the decision must be instituted in the Superior Court of Guam prior to the expiration of the 30th day after the decision has been filed in the office of the Commissioner.

IF YOU HAVE ANY QUESTIONS:

Write us at:  P.O. Box 9970, Tamuning, Guam  96931

Visit us at:  GCIC Building, Suite 205

Call us at: (671) 475-7033/34