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Definition of Second Injury Fund

Second Injury Fund is a fund that is set up by a state for the purpose of compensating a partially disabled employee who has another or second injury. While the laws regarding a second injury fund vary from state to state, the fund may pay all or a portion of the compensation that is due an injured employee for a second injury. A second injury fund also has the purpose of aiding and encouraging employers to hire disabled or handicapped employees and reduce the financial impact of a workers' compensation claim on an employer in the event that an employee with a disability aggravates a pre-existing impairment.

In recent years, several states have done away with their second injury fund. South Carolina and Georgia are debating the validity of their second injury fund. The reason for this is because second injury funds have encountered financial difficulty. As already stated, second injury funds were intended to encourage and promote employers to hire and retain employees with disabilities. However, the more direct way of protecting employees with disabilities is through the Americans With Disabilities Act, ADA, of 1990. This is a federal law that does not allow discrimination against people who have disabilities.

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