What is the purpose of a second injury fund in workers compensation?

The purpose of a second injury fund in workers' compensation is to provide benefits for employees with previous injuries. This fund is designed to encourage employers to hire workers who may have pre-existing disabilities or injuries by protecting them from having to bear the full cost of subsequent injuries that might occur.

When an employee with a pre-existing condition sustains a new work-related injury, the second injury fund can help cover additional costs associated with the new injury, thus relieving the employer from taking on an excessive financial burden. This approach promotes employment opportunities for individuals who might otherwise struggle to find work due to prior injuries, thereby fostering inclusivity and supporting workforce reintegration for those with disabilities.

By using a second injury fund, the workers' compensation system not only aids those employees who might require further assistance due to their past conditions but also aids in stimulating the economy by enabling more people to work and contribute.