Key point 8-07.2. 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.
The Arkansas Supreme Court ruled that the exclusive remedy of a female employee who was sexually assaulted by a manager was workers' compensation, and accordingly the woman's lawsuit for monetary damages based on her employer's negligence had to be dismissed. A woman claimed she was sexually assaulted by a store manager where she worked. She sued her employer alleging that it was negligent in its supervision, retention, and hiring of the manager. The store filed a motion to dismiss the complaint on the basis of the "exclusive remedy" afforded by the state workers' compensation law. The state supreme court agreed that the lawsuit had to be dismissed: