Workers? Compensation is a program requiring employers to purchase insurance coverage to provide benefits to employees who become ill or injured on the job. Through this program, workers are provided such benefits as lost wages and medical care. In exchange, employers are protected from personal injury lawsuits by injured employees. While the federal government administers a Workers? Compensation program for federal and certain other types of employees, each state has its own laws and programs for Workers? Compensation, such as the Pennsylvania Workers? Compensation Act .