Worker's compensation is administered by the:

• A. Federal government
• B. Private insurers
• C. State
• D. Local governments

Answer: (C)

In the United States, workers’ compensation is administered at the state level. Each state creates and runs its own workers’ compensation program through a state agency, handling claim filing, benefit determinations, and employer compliance. Employers fund coverage either through private insurers or a state fund, but the administration—how claims are processed and benefits are paid—is controlled by the state. There are federal programs for specific groups (such as federal employees or workers in certain industries), but for most private-sector workers, the day-to-day administration sits with state governments.