What happens when an employer in good faith continues to pay an employee who can not work due to a non-work related sickness or injury? They have created a precedence for future employees that become sick or disabled to expect the same treatment. If they do not received the same compensation, the employer who was trying to help his or her employees has just created a big problem for themselves.
When a company establish a formal Short-term and/or Long-term Disability, they have created a formal sick pay plan and taken this potential problem out of their hands. It is up the insurance company to process all claims and make the approproiate payments.
Many smaller companies only provide health insurnace, which is a huge expense and great benefits but not enought small companies offer short-term disability plans. They are not overly expensive and provide huge benefits for the employers and employees.
