Which fund ensures that an undue burden is NOT placed on an employer who hires an already seriously injured person?

• A. The Second Injury Fund
• B. Unemployment Benefit Fund
• C. Pension Fund
• D. Health Insurance Fund

Answer: (A)

When an employee already has a serious preexisting injury, an employer could face disproportionate workers’ compensation costs if that employee is later injured again. The Second Injury Fund is designed to prevent that burden by sharing or shifting part of the liability to a state fund. In practice, after a new work-related injury occurs, the fund covers the portion of the total disability attributable to the preexisting injury, while the employer remains responsible for the new injury’s portion. This lets employers hire workers with prior serious injuries without facing overwhelming future costs. The other funds mentioned—unemployment, pension, and health insurance—serve different purposes and do not address workers’ compensation liability in the same way. So, the Second Injury Fund is the mechanism that prevents an undue burden on the employer in this situation.