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Chapter 4. Staffing Up > Anatomy of an EmploymentAgreement--Including StockComp... - Pg. 99

Staffing Up Developers should note that repetitive stress injury might be considereda workplace injury if it would not haveoccurred but for the job requirements, as may emotional illnessesbrought on by workplace stress. 99 cannot sue the employer if the worker has received worker's compensation benefits. This means workers do not get pain and suffering and other categories of damages available in a civil suit. Independent contractors are not covered by worker's compensation. If an employee is injured on the job, he tells the company and the company files a report with its worker's compensation insurer, who then investigates and administers the claim. An employer will obtain the worker's compensation insurance in one of three ways, depending on state regulations: self-insuring (also known as "Russian Roulette," in which the employer is obliged to maintain a sufficient cash reserve to cover claims); buying into a state-administered insurance pool; or buying insurance from a private company. Caveat: If insurance is not obtained in strict adherence to state law, employers face penalties ranging from fines to temporary shutdowns to exposure to tort litigation by the employee. Anatomy of an EmploymentAgreement--Including StockCompensation Every person who performs any work for the company should sign an employment agreement before beginning work. Failure to do so may give rise to trouble ranging from ambiguity to litigation. The primary dangers of allowing employees to work without signing an employment agreement are: · Termination. Absent a written agreement, an employee may claim that management made oral promises of employment for a certain duration. Furthermore, having an employee's duties clearly