To gain a proper perspective toward the situation where a worker is injured on the job requires some insight into the evolution of auto dealer workers’ compensation. Before the advents of statutory compensation law, most can agree that the employees were treated less than fairly. The unfair assignment of negligence and its tort consequence made it easier for employers to be lax in their dealerships in supplying a safe environment for their workers.

Before statutory compensation law, an employee with a job-related injury could only pursue their employer in the courts through civil or tort law. It gave employees the very heavy burden of proof to show that the employer showed malice or negligence. In spite of the fact that the employers’ liability was unlimited, courts generally acted in favor of the employers, and did not properly consider all of the losses sustained by a worker in these situations: medical costs, lost wages, and loss of future earnings. This dynamic often severed the trained employee from future work with that employer.

The statutory compensation law became a great improvement on the situation for both employees and employers. With this strategy, a schedule is drawn out, listing for each type of injury, the amount of compensation that can be expected. The benefits to changing an open-ended, constantly changing target of responsibility and damage was brought under control, benefiting both parties. This forms the basis of modern auto dealer workers’ compensation, which is equitable for both parties.