Workers’ compensation is one of the most critical protections in the workplace, yet it remains widely misunderstood by employees across all generations. A recent survey revealed just how significant this knowledge gap is: 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. These statistics highlight the urgent need for better education on how the system works—and how employees can access the support they deserve.
Clearing Up Common Misconceptions
One of the biggest areas of confusion is around who actually pays workers’ compensation benefits. Many employees mistakenly believe it comes directly out of their employer’s pocket. In reality, workers’ comp is a no-fault insurance system. Once a claim is approved, it’s the employer’s insurance provider—not the employer—that covers the medical expenses and wage replacement benefits.
This no-fault structure means that benefits are provided regardless of who caused the injury. Workers don’t have to prove their employer was negligent, and employers are shielded from lawsuits in most cases. However, this also means that workers’ comp is not designed to fix unsafe conditions in the workplace or assign blame. Its sole purpose is to provide compensation and medical coverage.
Where Employees Are Getting It Wrong
Survey data showed widespread confusion across several key areas:
- Medical Coverage: While 64% of workers understood that workers’ comp pays for necessary medical care during recovery, that still leaves a significant percentage who don’t. If employees ever find themselves paying out of pocket for job-related treatment, it’s often a sign of a claims issue that needs to be addressed.
- Employer Responsibility: Nearly 80% of employees incorrectly believed that workers’ comp forces employers to fix unsafe conditions. While safety regulations exist, workers’ comp itself does not enforce workplace changes—it simply compensates injured workers.
- Legal Rights: More than four in five workers wrongly believed that a workers’ comp attorney can sue an employer for unsafe conditions. In reality, workers’ comp lawyers focus exclusively on helping employees secure benefits through the comp system. If an employee wanted to sue an employer, that would require a separate employment law case.
Mental Health Misunderstandings
Another area of confusion is mental health coverage. Two-thirds of workers surveyed believed mental health conditions are never covered under workers’ comp. While coverage is limited, it does exist in certain scenarios. For example, anxiety, PTSD, or other mental health challenges may be covered if they are tied directly to a workplace incident or if the worker is a first responder. However, approval is difficult, the burden of proof is high, and in some states these claims are not allowed at all.
Why Workers Stay Silent
Fear is another major barrier. Nearly half of surveyed employees believe that filing a workers’ comp claim could put their job at risk. While this fear is understandable, workers’ comp laws exist to protect employees from retaliation. Still, this misconception may prevent workers from filing legitimate claims—leaving them without the medical or financial support they’re entitled to.
The Reality of Workers’ Comp Experiences
Despite the confusion, the majority of those who do file claims report successful outcomes. According to the survey:
- 72% of applicants were approved,
- 11% were denied,
- 10% are still waiting for a decision,
- 3% withdrew their claim, and
- 3% weren’t sure about the outcome.
Interestingly, 54% of workers described their overall experience as positive, while 27% had negative experiences. Yet, only 31% of workers said their workers’ comp coverage fully met their basic needs. More than half said it helped “somewhat,” while 17% struggled significantly to cover essentials such as rent, food, and bills.
How Skyscraper Insurance Helps
At Skyscraper Insurance, we believe that workers deserve more than just partial answers—they deserve clarity, protection, and proactive education. Our role is to ensure that businesses carry the right workers’ compensation coverage, so employees have access to the benefits they need when the unexpected happens. We also help employers understand their responsibilities, reduce risks, and foster safer workplaces.
Workers’ compensation should not be a mystery. By closing the education gap, we empower employees to feel secure and supported, while helping businesses build trust and resilience.
👉 Ready to make sure your workers’ comp program is as strong as your team? Contact Skyscraper Insurance today to review your coverage and build a strategy that protects both your employees and your business.
