In some states payment will be made only to certain of the decedent's immediate relatives. New Hampshire even goes so far as to deny payment to dependents not resident in the state at the time of the workman's death. As a matter of justice aliens should receive payments on the same basis as other dependents.

Waiting Period. In the majority of states payment of compensation begins only after a two weeks duration of disability. Oregon alone requires payment unqualifiedly from date of injury, while Illinois and Minnesota provide for such payment in the case of permanent injuries.11 In six states payment dates back to the time of the injury if disability continues for a certain length of time.12. This waiting period refers only to the actual payment of benefits-medical and surgical aid must be supplied immediately on the occurrence of an injury. Its purpose is to exclude unimportant injuries and to prevent malingery. In a multitude of cases where disability lasts for a few hours or days the cost of administration of compensation benefits would be disproportionately large in comparison with benefits and would result in a net social loss. This fact makes necessary the exclusion of a large class of accidents which make a considerable showing in the aggregate but which are of little importance in the individual case.

One of the dangers of granting compensation arises

11 Certain acts provide waiting periods of three, six, seven, or ten days and one sets the time at three weeks. In Washington no payment is made unless the time lost is equivalent to a loss of 5% of the monthly wages.

"Two to eight weeks.

from the inducement given the workman to feign injury or to allege a longer period of incapacity from actual injury than is justified. The waiting period furnishes an opportunity for examination and for detection of this sort of malingery and should be of sufficient length to counteract any tendency in this direction. If it is too short it will tempt the workman to prolong his period of idleness in order to secure payment of benefits; if too long, an undue burden of loss will be imposed upon him. The provision that compensation shall date back to the injury if disability endures for a considerable length of time is undoubtedly wise, but a waiting period of two weeks with compensation from date of injury if incapacity for work lasts over two weeks is too great a temptation to malinger. Prolongation of disability for one or two days would entitle the workman to the full two weeks' compensation in many cases. The length of the waiting period should strike an equitable mean between conflicting considerations and should depend to some extent on local conditions of industry and administration. In no case should it be over two weeks.

CHAPTER X

WORKMEN'S COMPENSATION LEGISLATION IN THE UNITED STATES AND TERRITORIES (Continued)

THE SCHEDULE OF COMPENSATION

Since workmen's compensation laws are designed to provide benefits for those suffering economic loss through injury, a most important section of a compensation act is that setting forth the amount of such benefits. To be just, they should be proportioned to the losses which they indemnify. The first problem is to find a suitable measure of the loss which will serve as a basis for the computation of payments. The most practicable measure of economic loss is the wages received by the injured workman at the time of the injury and this has been adopted by all except three states. Compensation payments are expressed in the form of a percentage of wages, usually between definite limits. This percentage must not be set too low lest the benefits prove insufficient, nor should it be set too high lest they offer an incentive to malingery.

Provision must likewise be made for medical and surgical aid and for the payment of benefits in periodical installments or lump sums as may be deemed wise.

Classification of Industrial Accidents. For pur

poses of compensation industrial accidents are divided. into two general classes, non-fatal and fatal. In nonfatal cases all payments are made to the injured person and the only question involved concerns their amount. Fatal cases raise questions both of amount and of distribution. If a certain fixed percentage is to be paid to dependents, regardless of their number and relationship, it must be determined how that amount is to be distributed among them, whether they are to share equally or according to relationship and degree of dependency. This may be accomplished by the insertion of provisions in the law or by authorizing the administrative body to adjust such matters. If it is considered best to award a definite percentage to each of the dependents, according to relationship or dependency, these percentages must find expression in the law. Further, it is necessary to provide for payments to non-resident aliens if it is desired to treat them differently from residents.

While the complications in fatal cases arise from the nature of the beneficiaries, in non-fatal cases they are due to the varying nature of injuries, which are classified as total or partial disabilities. Total disability is that disability which renders it impossible for a workman to perform any work whatsoever, while partial disability exists when he is able to continue work but with a reduced earning capacity. Either total or partial disability may be permanent or temporary; the former continuing for life, the latter for a shorter period. Another class usually inserted embraces specific injuries, such as the loss of an eye, hand, foot,

etc.

Each of these groups may in turn be divided into compensable and non-compensable cases; or, specifically, those cases in which compensation is payable under the law and those cases in which it is not so payable.

Total Disability Benefits.-For temporary total disability a sum equal to fifty per cent of the wages is granted in twenty-one states and one territory, the usual basis being the average weekly wage. Other acts provide for larger percentages as follows: fiftyfive per cent in Indiana, sixty per cent in Texas and Hawaii, sixty-five per cent in California, Wisconsin,1 and Kentucky, and sixty-six and two-thirds per cent in Massachusetts, New York, and Ohio and under the federal act. Three states, Oregon, Washington, and Wyoming require the payment of periodical amounts, fixed with reference to conjugal state and number of children; in the first two of which the payment for the first six months is computed by increasing the permanent total disability payments 2 by fifty per cent with a maximum limit of sixty per cent of wages. In Wyoming the following schedule is in force: an unmarried workman receives fifteen dollars per month, a married workman living with his wife, twenty dollars, plus five dollars for each child under sixteen years of age, the total not to exceed thirty-five dollars. In four states compensation for temporary total disability continues as long as disability lasts, though in three the rate is reduced after a certain period has

3

1 In Wisconsin 100% is allowed if a nurse is necessary.

2 V. p. 119.

3

Colorado, Nebraska, Oregon, and Washington.