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Employees often miss out on compensation for job-related injuries or illnesses because of misconceptions about workers' compensation. Only 58% of baby boomers, 56% of Gen X, 54% of millennials and 50% of Gen Z correctly answered all questions about workers' compensation eligibility and benefits in a recent survey by the law firm Atticus.
“One major point of confusion is who actually pays workers' comp benefits,” lead attorney Victoria Muñoz said. “Workers' compensation is a no-fault insurance system. Once a claim is approved, it's the employer's insurance company, not the employer, that's responsible for paying benefits.”
Just 29% of survey respondents answered this question correctly. More people (64%) correctly understood that workers' comp pays for all necessary medical care while the employee is recovering. If a worker ends up paying out of pocket, it's a sign that something has gone wrong. In those cases, speaking with a workers' comp attorney can help resolve issues with coverage.
There also was confusion around legal rights. For example, 79% incorrectly believed that workers’ comp would require an employer to fix unsafe conditions if they led to an injury. But as a no-fault system, workers' comp does not investigate blame or require employers to change workplace conditions. It's designed only to provide compensation, not prevention.
Likewise, more than 4 in 5 believed that a workers' comp lawyer can help sue an employer for unsafe work conditions. In reality, a workers' comp lawyer can only help workers receive benefits through the comp system. If someone wanted to sue their employer, they would need to consult an employment lawyer, which is a completely separate legal route.
Mental health coverage is another misunderstood area. Although two-thirds of respondents said mental health conditions are never covered, the truth is more complicated. Workers' comp can cover mental health conditions such as anxiety or PTSD, but only in limited circumstances.
Some states do not allow these types of claims at all, while others permit them only if tied to a physical injury or if the person is a first responder. Even in states that do allow claims, the burden of proof is high, and approval is rare unless a direct link to a specific workplace incident can be shown.
Among other notable findings:
- Nearly half of workers believe that filing a workers' comp claim could put their job at risk.
- Just more than 1 in 10 said they have applied for workers' compensation, and most were successful. Among applicants, 72% were approved, 11% were denied and 10% still are waiting for a decision. Meanwhile, 3% withdrew their claim, and 3% weren't sure about the outcome.
- Fifty-four percent of workers describe their experience with the workers' compensation system as positive, while 27% said their experience was negative.
- Just 31% of workers said workers' comp fully covered their basic needs, while 51% said it helped somewhat. Another 17% report significant struggles to afford essentials such as rent, food and bills.
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