Monday, April 4, 2011

Pirates and Workman's Comp

Did you know that pirates had developed a workers' compensation system back when New York was still an English colony?

As a company of "entreprenuers", pirates knew how to work together and they maintained a strict code of conduct toward their cohorts. If a pirate was injured or maimed on the job, there was a prior written agreement which compensated him a certain amount of gold depending on the injury.

If he lost and eye or finger a pirate could receive 100 "pieces o' eight". He received 500 pieces if he lost his left arm or right leg, and 600 pieces for the loss of his right arm. This sum was nearly six years of wages. By modern standards these compensations are very similar to what we have now for serious disability.

Pirates could also be assigned to less strenuous chores on the ship while they recovered. This is evidence of the first return-to-work program ever created.

The novel idea of workers' injury compensation migrated to Germany and England but did not make its way to America until the early 1900's. New York was one of four states to pass early mandatory workers' compensation laws which were later overturned in the courts. The New York Court of Appeals ruled that the workers' compensation program was unconstitutional on March 24th, 1911.

Ironically the very next day a factory fire killed 146 workers at the Triangle Shirtwaist Factory in New York.
This event is considered a turning point in the history of workers' compensation in America. The change in America legal climate was no doubt influenced by the horrific aftermath of the Triangle Factory fire. By the end of 1911 there were 9 states which had successfully passed workers' compensation laws.

So 2011 marks the 100th anniversary of workers' compensation in America.

Did you know that Crawford-Butz is well positioned to help with all your Workman's Comp needs. Call us at 314 752-2500.

Source: Insurance Journal online, "Happy 100th Birthday Workers' Compensation: The Great Tradeoff!" Christopher Boggs, 23 March 2011

No comments: