Final answer:
The exception allowing employees to sue employers for on-the-job injuries beyond the Worker's Compensation policy is the employer liability exception, which applies in cases such as gross negligence or safety violations.
Step-by-step explanation:
An exception to the rule that employees cannot sue their employer for on-the-job injuries and must file a claim against the employer's Worker's Compensation policy is known as the employer liability exception. Typically, Workman's compensation insurance requires employers to contribute a portion of salaries into state-run funds that provide benefits to workers who suffer job-related injuries. However, there are circumstances where an employee can sue their employer, such as in cases of extreme negligence or when the employer has violated certain safety regulations that led to an injury.
Additionally, employees have protections under laws like the OSH Act, which prevents employers from retaliating against workers for exercising their rights, such as reporting a work-related injury. There are also situations where an employee could take legal action against an employer for reasons like discrimination in compensation based on racial discrimination, which requires a different kind of proof than that used in worker's compensation claims.