Click here for a short video on how workers' compensation laws developed in the U.S. Remember that each state has its own laws, and that the idea is to compensation all injured workers to some extent. In order to require that employers purchase workers' compensation insurance policies, the cost has to be affordable for employers. That means that injured workers are not compensated 100% for lost wages. Injured workers do not receive the same type of settlements that people may recover when they sue someone at fault for their injury who is not a co-worker or an employer.