What does AOE/COE stand for in the context of workers' compensation?

• A. Arising Out of Employment / Course of Employment
• B. Actual Operating Expenses
• C. Arising On Employment / Condition Of Employment
• D. Arising Out of Earnings / Cost of Employment

Answer: (A)

In workers' compensation, a claim is compensable only if the injury is connected to the job in two ways: arising out of the employment and in the course of the employment. AOE/COE stands for Arising Out of Employment and Course of Employment.

Arising out of the employment means the risk or cause of the injury comes from the work itself or the work environment—it's not a personal risk unrelated to the job. For example, getting hurt by a machine you’re operating or by a condition on the worksite links the injury to the job.

Course of employment means the injury happened during the time the worker is on the job or performing job duties, including activities that are part of work tasks or authorized work-related travel. It excludes injuries that occur during purely personal activities that aren’t connected to work.

So the correct terms describe the two linked questions used to determine eligibility: does the injury arise from the employment, and did it occur during the employment. The other options use terms that aren’t standard in workers’ compensation and don’t address this two-part connection.