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Workers Compensation - Part 1

The Ohio Supreme Court ruled that an employee of a manufacturing company who was injured on the job and awarded workers compensation benefits was engaging in fraud by accepting compensation for performing services as pastor of a church.

Key point 8-02. All states have enacted workers compensation laws to provide benefits to employees who are injured or become ill in the course of their employment. Benefits generally are financed through insurance premiums paid by employers. Churches are subject to workers compensation laws in most states.
Workers Compensation

* The Ohio Supreme Court ruled that an employee of a manufacturing company who was injured on the job and awarded workers compensation benefits was engaging in fraud by accepting compensation for performing services as pastor of a church. An employee ("Sam") was injured while working for a secular employer, and he received a workers' compensation award based on "permanent total disability." Several years later, Sam's former employer learned that for nearly 15 years following his "injury" he had been earning a weekly salary of $600 as a pastor. A state agency later ...

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Richard R. Hammar is an attorney, CPA and author specializing in legal and tax issues for churches and clergy.

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Posted:
  • May 1, 2003

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