How much do Americans really know about workers' comp? Workers' comp for mental health Do workers trust the system to protect them? What is the real experience of applying for workers' comp? Methodology Frequently asked questions about workers’ comp Resources > Workers compensation Workers compensation Workers' comp news and reports 2025 Workers' Compensation Knowledge Report Written by Victoria Muñoz Lead Attorney Published August 20, 2025 2 min read Why trust us? Compass Disability offers free, high-quality workers' compensation advice to those injured at work. Our team of Stanford and Harvard trained lawyers has a combined 15+ years of legal experience, and help thousands of Americans get the benefits they deserve each year.
Why trust us? Understanding workers' compensation is crucial for anyone navigating job-related injuries or illnesses. Yet many Americans hold misconceptions about their rights, and those gaps in knowledge can lead to missed benefits or avoidable hardships. Compass Disability surveyed 1,000 U.S. adults to explore what people know about workers' comp, where they're confused, and how their real-life experiences reflect the challenges in the system.
Key takeaways
- Nearly 1 in 2 Americans (49%) believe that filing a workers' comp claim could put their job at risk.
- Just over 1 in 10 Americans (12%) say they've applied for workers' compensation, and most were successful. Among applicants, 72% were approved, 11% were denied, and 10% are still waiting on a decision. Meanwhile, 3% withdrew their claim, and 3% weren't sure about the outcome.
- 54% of workers describe their experience with the workers' compensation system as positive, while 27% say their experience was negative.
- Just 31% of workers say workers' comp fully covered their basic needs, while 51% say it helped somewhat. Another 17% report significant struggles to afford essentials like rent, food, and bills.
How much do Americans really know about workers' comp?
- 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.
One major point of confusion is who actually pays workers' comp benefits. 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 correctly.
More people (64%) correctly understood that workers' comp pays for all necessary medical care while you're 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 was also confusion around legal rights. For example, 79% incorrectly believed that workers' comp would require an employer to fix unsafe conditions if those 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, over 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 you 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.
Workers' comp for mental health
Mental health coverage is another misunderstood area. While 66% said mental health conditions are never covered, the truth is more complicated. Workers' comp can cover mental health conditions like anxiety or PTSD, but only in limited circumstances.
Some states do not allow these types of claims at all. Others only permit them 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 very high, and approval is rare unless a direct link to a specific workplace incident can be shown. You can read more about this in Compass Disability' guide to mental health and workers' comp .
Do workers trust the system to protect them?
Overall, 49% of Americans, including 51% of millennials, 47% of Gen X, 46% of Gen Z, and 45% of baby boomers, believe that filing a workers' comp claim could put their jobs at risk.
Percentage who believe the workers' comp system helps workers
- Baby boomers: 58%
- Gen X: 42%
- Millennials: 38%
- Gen Z: 49%
Percentage who believe the system protects employers
- Baby boomers: 15%
- Gen X: 17%
- Millennials: 23%
- Gen Z: 25%
Percentage who believe the system equally helps workers and protects employers
- Baby boomers: 27%
- Gen X: 41%
- Millennials: 39%
- Gen Z: 27%
What is the real experience of applying for workers' comp?
- 12% of Americans have applied for workers' compensation. Their claim outcomes were as follows: approval (72%), denial (11%), awaiting a decision (10%), withdrawal (3%), and unsure (3%).
- On average, it took 5 weeks for applicants to receive their first workers' comp payment after submitting the paperwork.
- Nearly 1 in 10 workers (9%) waited 8 weeks or more to receive their first workers' comp payment.
- Nearly 3 in 10 workers (29%) experienced a delay in receiving their workers' comp payments. The top reasons were administrative backlog or system error (40%) and disputes over whether the injury was work-related (24%).
- When asked if workers' comp covered their basic needs, just 31% said it did fully, while 51% said it helped somewhat. Another 17% reported struggling significantly to meet essentials like rent, food, and bills.
- 54% of workers describe their experience with the workers' compensation system as positive, while 27% say their experience was negative.
- About 2 in 3 workers (66%) say they were satisfied with the quality of medical care they received through workers' compensation.
- Just over 3 in 5 workers (62%) say their employer was supportive during the workers' comp claim process.
Top 5 most difficult parts of filing for workers' compensation
- Completing paperwork: 24%
- Waiting for benefits: 22%
- Communicating with employer or insurer: 14%
- Understanding eligibility: 12%
- Claim denial or appeal: 8%
Top 5 things workers wish they knew before filing for workers' compensation
- How long the process might take: 33%
- That the wage replacement is partial: 26%
- That hiring a lawyer may be necessary: 24%
- That their employer might retaliate: 22%
- That not all injuries are covered: 21%
Methodology
We surveyed 1,000 Americans to gauge public understanding of workers' compensation, identify misconceptions, and uncover the real-life struggles applicants face. The average age of respondents was 40; 50% were women, and 50% were men. Generationally, 6% were baby boomers (born 1946–1964), 24% were Gen X (1965–1980), 54% were millennials (1981–1996), and 15% were Gen Z (1997–2012). Due to rounding, some percentages in this study may not total 100% exactly.
About Compass Disability
Compass Disability is a public interest law firm that helps Americans in a crisis secure aid from the government. Through a dedicated team of lawyers and case advocates, we specialize in helping individuals claim their rightful benefits in challenging times.
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Frequently asked questions about workers’ comp
How does workers’ comp work?
The workers’ comp process starts when you report your work injury or illness to your employer. Then you have to file a claim within a certain amount of time so you can qualify for weekly payments and reimbursement of your medical bills while you recover.
Can I get workers’ comp if the injury was my fault?
Yes. You can qualify for workers’ comp no matter whose fault the injury or illness was, as long as it happened while you were doing your job. Our guide to qualifying accidents and injuries will help you see if you could get coverage.
Do all workers qualify for workers’ comp?
You're probably eligible for workers’ comp if your employer withholds taxes from your paychecks. Independent contractors don’t usually qualify, but states may offer coverage to certain contractors, volunteers, or seasonal workers. Check with your state workers’ comp board to see exactly who qualifies in your area.
How much does workers’ comp pay?
Workers’ compensation is generally worth up to two-thirds of your pre-injury wages, but exact rates vary by state. Read more about how much workers’ comp pays in each state .
Do I need a workers’ comp lawyer?
Not everyone needs to work with a lawyer, but a workers’ comp lawyer can especially help if your claim is denied, if you get a settlement offer, or even if your claim just lasts for more than a few months. Here are some situations when a lawyer can help you .
How long do workers’ comp benefits last?
How long your benefits last varies by state, but you usually have until you reach maximum medical improvement (MMI). There are also long-term options if you can’t return to work after injury .
Is workers’ comp taxable?
No, workers’ comp benefits aren’t taxable . That's true whether you get weekly payments, a lump-sum settlement , or a settlement with a structured payment plan.
Victoria Muñoz
Lead Attorney
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