During 2024, the Bureau of Labor Statistics has reported 5,070 instances of fatal injuries to the workforce in the United States. The numbers represent families who face immediate financial challenges as they try to cope with all the costs associated with the death of their loved one. The expenses for burial services begin to arrive before the majority of benefit payments reach their recipients.
There are several factors to consider when explaining what happens when an employee dies at work. Yet still, there are different financial streams that the bereaved family members can seek. To avail these, however, there are different application processes, eligibility restrictions, and deadline dates to follow. The inability to submit an application or report in due time is likely to lead to permanent loss of benefits.
Let’s look at the various benefits families of a worker can gain access to following a workplace death.
Workers’ Compensation Death Benefits
Workers’ compensation provides death benefits to dependents who meet eligibility requirements when a worker dies as a result of an occupational disease or work-related accident. This is typically the first and most direct source of financial support after a workplace fatality.
The employer or their insurer must inform the designated state workers’ compensation agency about the incident. Eligible survivors, usually a surviving spouse and dependent children, should also file a workers’ compensation claim independently and not rely on the employer to initiate it on their behalf. Each state administers its program with varying eligibility rules and benefit amounts.
Most states pay weekly death benefits, which amount to two-thirds of the deceased worker’s average weekly wage at the time of death. This amount is calculated based on the state-established minimum and maximum limits. Benefits for surviving spouses continue until the spouse enters a new marriage. If this situation happens, some states choose to reduce through payment cuts instead of ending benefits. Dependent children receive benefits until they reach 18 years of age or until they finish full-time education, which lasts until age 22.
Workers’ compensation covers all necessary funeral and burial costs, which state law establishes as a maximum dollar amount. The organization provides payments that exist independently from the weekly death benefits.
States strictly enforce the statute of limitations on wrongful death cases and claims for workplace injuries. The deadline for these claims may vary depending on the state. It is usual for claims to be filed within one to three years from the date of death.
If you are an employee of a private company or an immediate family member of a worker, you may want to contact your state office for workers’ compensation for assistance or guidance. Federal employees should get in touch with the Office of Workers’ Compensation Programs.
In some cases, you can bring claims for a personal injury even after a workplace death occurs and workers’ compensation applies. For more information about personal injury claims, visit renicklawfirm.com.
Social Security Survivor Benefits
You will find monthly survivor benefits from the Social Security Administration (SSA) for relatives who survived a worker who passed away and made contributions to the SSA. The usual amount of survivor benefits paid in 2025 was $1,574 per month.
Eligibility extends to:
- The surviving spouses, both men and women, who are sixty years of age or older (or fifty years of age and disabled). Any surviving spouses who are caring for a child under sixteen years of age or a child with a disability.
- Children below the age of 18 or, if they are still in school, up to 22 years of age and also dependent on the deceased to work.
- People who were married to the deceased for at least 10 years and have formally divorced.
- Parents older than 62 years old that depended on the late parent for a minimum of 50% of their income are also eligible for claiming survivor benefits
The benefit amounts get determined by calculating a specific percentage of the primary insurance amount that belonged to the deceased worker. A surviving spouse who claims at full retirement age receives 100 percent of that amount. Children receive 75 percent each, but their payments can be reduced through a family maximum, which applies when multiple family members are collecting benefits.
You should submit your application immediately after your loved one passes away. It is important to keep in mind that the Social Security Administration does not make payments retroactively upon the submission of an application. The application can be made by calling 1-800-772-1213 or by visiting the Social Security Office in person.
Employer-Provided Life Insurance and Retirement Benefits
Most businesses offer group life insurance as an automatic benefit, which they give to their employees. The policy benefit is typically paid as a lump sum to the named beneficiary. The claimant must contact their workplace’s human resources department to begin the claim process. The required documents require the submission of a death certificate and a completed claim form together with the beneficiary’s identity verification documents.
The named beneficiary receives 401(k), pension, and other retirement account funds from the deceased. These accounts bypass the probate process. The distribution procedure begins with the plan administrator. The estate distribution process follows state intestacy laws and the deceased’s will for accounts that do not have a designated beneficiary, which results in extensive access delays.
Federal employees who participate in the Federal Employees Retirement System (FERS) can access extra death benefits from the Office of Personnel Management (OPM), which includes a basic employee death benefit. This benefit provides 50 percent of the employee’s last salary together with an indexed amount that reached $43,800 for deaths after December 1, 2025.
Wrongful Death Claims When Negligence Was Involved
Workers’ compensation functions as a system that provides benefits without assigning liability for workplace injuries. The system provides payments to workers who suffered workplace accidents but establishes limits on employer responsibility and protects employers from most legal actions. The system provides exactly defined benefits, which do not reach the total amount needed to replace wages or cover all financial losses.
Workers’ compensation benefits become available to a deceased worker’s family when somebody who is not their employer caused their death. The most common situations that lead to third-party lawsuits involve defective equipment made by outside companies, unsafe worksite practices by contractors, and vehicle collisions with another driver.
Compensation that the family receives in a wrongful death scenario usually includes the amount the deceased person would have earned had he or she lived, the value to the family of such things the person would have provided in support of the family, and the value of the services he or she would have provided in a lifetime. The funeral and cremation costs, along with the emotional pain that the surviving family members suffer, are also taken into account.
Various states have their own regulations regarding the statute of limitations for wrongful death claims, which tends to be within two and three years following the death of the victim. The processing of workers’ compensation claims will not stop the counting of these time limits. Employees should contact an attorney who specializes in workplace fatalities when they believe a third party caused the accident since the applicable workers’ compensation benefits will expire after a specific period of time.
Act on Multiple Fronts at Once
The processes for workers’ compensation and Social Security and employer benefit claims exist as separate systems. The common error of waiting to submit one application until another application finishes processing leads to losing benefits that should have been accessible early on.
After the death of a loved one, there are important steps you need to take to start the workers’ compensation process. You will need to contact the SSA to begin the survivor benefits application and request copies of the deceased employee’s benefits documentation from HR.
The Occupational Safety and Health Administration (OSHA) requires employers to report any fatality at work locations within eight hours. This report will establish the official record of the incident, which will affect workers’ compensation, all OSHA investigations, and future wrongful death claims. Once the investigation concludes, the family members may ask for the release of the investigation data and report.
