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A: Worker’s compensation, also known as worker’s comp or a compensation bargain, is a shore-based statutory right providing a type of insurance for employees who become injured or ill during the course of their employment. Some consider it a type of devil’s bargain whereby the worker trades off their right to sue their employer in exchange for medical benefits and wage replacement. Workers are generally paid 2/3 of their salary with compensation determined on a state-by-state basis.
Maintenance and cure is a Jones Act right for those working on the water. Under the maintenance provision, employers must pay the incapacitated employee a daily rate of subsistence covering reasonable room and board expenses until being declared fit for duty. Under the cure aspect, the seaman receives payment covering medical expenses.
Worker’s comp may seem like a better deal because the 2/3 salary is higher than the $15 to $30 per day paid through maintenance and cure. However, the latter is often much better in the long run because of legal options such as the potential right to sue that are not allowed under worker’s comp. In fact, it is not uncommon for seamen to receive maritime damages even though they initially received worker’s comp.
