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When is workers' compensation necessary?

  1. When employees work overtime

  2. When required by local laws only

  3. Whenever there are hazardous materials

  4. In situations involving employee injuries

The correct answer is: In situations involving employee injuries

Workers' compensation is necessary in situations involving employee injuries because it provides financial support and medical benefits to employees who are injured or become ill as a result of their job. This system is designed to ensure that workers do not suffer undue financial hardship due to workplace incidents. It also protects employers from being sued for workplace injuries, as employees give up their right to sue in exchange for these benefits. While the other choices touch on various scenarios that may involve workplace safety or legality, they do not capture the fundamental purpose of workers' compensation. Overtime does not directly relate to injuries; local laws may vary but do not define the necessity of compensation; and hazardous materials require safety procedures but again do not automatically trigger workers' compensation without an injury event. Thus, the requirement for workers' compensation fundamentally centers on the occurrence of injuries sustained during the course of employment.