Ten surprising misconceptions employees have about work comp

The 2025 Workers' Compensation Knowledge Report by Atticus, a legal services company offering free workers compensation advice to those injured at work, reveals critical knowledge gaps about work comp processes and employee and employer rights. These widespread misconceptions create barriers to accessing benefits, discourage early reporting, and indicate the need for better education.The company surveyed 1,000 adults, evenly split by gender, with an average age of 40, to explore what people know about workers comp, where they're confused, and how their real-life experiences reflect the challenges in the system.

Common misconceptions

1. Nearly 1 in 2 (49 percent) believe that filing a workers comp claim could put their job at risk
2. 79 percent think workers' comp requires employers to "fix unsafe conditions" that caused the injury
3. Only 29 percent correctly understand that once a claim is approved, the employer's insurance (not the employer) directly pays benefits
4. 66 percent believe mental health conditions are never covered
5. Over 80 percent believe a workers comp lawyer can sue an employer over unsafe conditions
6. 47 percent did not know that if they receive work comp for an injury, they generally cannot sue the employer for the same injury
7. 48 percent did not know if they refuse light duty, they are jeopardizing their benefits
8. 68 percent believe benefits would end if they got fired, quit, or changed jobs
9. Only one-quarter knew work comp payments are not taxable
10. 36 percent did not know that workers comp would pay for all necessary medical care

Experience of workers applying for benefits

Of those surveyed, 12 percent had filed workers compensation claims. While 72 percent received approval, workers faced an average wait of five weeks for initial payments, with nearly one in 10 waiting eight weeks or longer. Nearly 3 in 10 workers (29 percent) experienced a delay in receiving their payments. The top reasons were administrative backlog or system error (40 percent) and disputes over whether the injury was work-related (24 percent).

Less than one-third said that the payments covered their basic needs, and 17 percent reported struggling to meet essentials like rent and food. Slightly more than half (54 percent) reported a positive experience, while 27 percent said it was negative. Two-thirds were satisfied with the medical care, and 62 percent said their employer was supportive. For employees, completing the paperwork and waiting for benefits were the most difficult parts of the process.

Takeaways for employers

Many workers are misinformed about what workers comp does and doesn't cover, feel the system favors employers, and worry about retaliation if they file a claim. Overwhelming paperwork and delays in payments are top barriers to a positive experience. Companies that position work comp as a benefit and have a well-managed process achieve lower costs and greater employee satisfaction.

The most effective programs start with thorough communication before an injury happens. In addition to clearly explaining employee rights, the no-fault nature of the system, and how the process works from the time of injury through recovery, employers should set expectations about reporting injuries promptly, attending medical visits and follow-up, participating in recovery-at-work programs, and providing feedback. Transparency fosters trust and prevents confusion in the event of an injury.

Ultimately, employers who prepare, educate, and engage their workforce not only lower comp costs but also foster loyalty and productivity. Kevin Ring, the Lead Workers' Compensation Analyst for the Institute of WorkComp Professionals, explains how in Are You Making Workers Comp "Employee Friendly?".