Survey Reveals Knowledge Gaps About How Workers’ Compensation Works

September 15, 2025

Survey reveals widespread misconceptions about workers' compensation rights and protections.

Nearly half of American workers believe filing a workers’ compensation claim could jeopardize their employment, according to a new survey of 1,000 U.S. adults by Atticus that exposes critical knowledge gaps about workplace injury protections.

The research reveals troubling confusion about basic workers’ compensation rules across all generations, according to a report on the survey’s findings. Less than 60% of respondents in any age group correctly answered fundamental questions about eligibility and benefits. For example, the report noted, only 29% understand that insurance companies, not employers, pay workers’ compensation benefits.

This lack of understanding extends to legal protections. Some 79% of workers incorrectly believed the system requires employers to fix unsafe conditions that cause injuries, while 19% incorrectly said that a workers’ comp lawyer can help them to sue their employer for unsafe work conditions.

In reality, workers’ compensation operates as a no-fault insurance system focused solely on providing benefits, not preventing future accidents or assigning blame, according to Atticus.

Mental health coverage represents another area of confusion. While 66% believe psychological conditions are never covered, the reality varies significantly by state. Some jurisdictions exclude mental health claims entirely, while others permit them only for first responders or when connected to physical injuries, the report noted. Even where allowed, approval remains rare without clear links to specific workplace incidents.

System Struggles to Meet Worker Needs

Among the 12% of Americans who have filed workers’ compensation claims, experiences reveal a system struggling to deliver timely, adequate support, the survey found. While 72% of applicants received approval, workers faced an average five-week wait for initial payments, with nearly one in 10 waiting eight weeks or longer.

Financial hardship emerges as a persistent challenge. Only 31% report that benefits fully covered basic living expenses, while 17% struggled significantly with essentials like rent and food. Administrative delays affected 29% of claimants, primarily due to system backlogs and disputes over whether injuries were work-related, the report said.

The application process itself presents obstacles. Workers cited paperwork completion, benefit delays, and communication difficulties as top challenges. One-third wish they had known about processing times, while 26% said they were surprised to learn wage replacement is only partial, not full compensation.

Building Trust Requires Education and Reform

The survey showed a generational divide in workers’ compensation system trust: 58% of Baby Boomers believe workers’ compensation helps employees, compared to just 38% of Millennials.

For employers and insurers, addressing these knowledge gaps represents both an obligation and an opportunity. Clear communication about rights and processes could reduce the 49% of workers who fear retaliation, potentially encouraging earlier injury reporting and better outcomes, according to Atticus. Educational initiatives explaining the no-fault nature of the system and the role of insurance companies could build confidence among employees, the report added.