In an elective Workers Compensation system, what choice do employers and employees have?

In an elective Workers Compensation system, employers and employees have the ability to either accept or reject participation in the Workers Compensation program. This means they can choose whether to conform to the legal requirements of the Workers Compensation system or opt out of it.

By allowing the option to reject the law, this system provides flexibility for both parties involved. Employers might choose to reject the Workers Compensation coverage if they prefer to establish their own forms of employee protection or insurance, while employees can also have a say in whether or not they want to participate in that coverage. This contrasts significantly with non-elective systems where participation is mandatory, leaving no room for choice.

Thus, the ability to either accept or reject the Workers Compensation law represents a key characteristic of elective systems, highlighting the autonomy both employers and employees have in managing their insurance needs.