8 Common Misconceptions About Workers’ Compensation Law Debunked

Do you think you know workers’ compensation law?

Don’t lie, we all know most people don’t. In fact, there are so many misconceptions about workers’ comp that they are preventing workers and employers from accessing benefits that they are legally entitled to. The worst part is…

They’re costing you money.

Whether you are a small business owner or a corporate employee, when it comes to workers’ compensation law the facts matter. Incorrect assumptions mean lost coverage, legal headaches, and lost money for both employers and employees.

Let’s bust some of these myths for good, and help everyone get on the same page with the truth.

What you will learn:

• The truth behind workers’ comp coverage
• Costly mistakes business owners are making
• What really happens when you file a claim
• How to protect your rights (and your business)

The truth behind workers’ comp coverage

Here’s the truth that most people get wrong about workers’ compensation law…

Many people assume workers’ comp only applies to injuries sustained in the office, factory, or job site. That is so last century. The fact is, workers’ comp covers so much more than just workplace accidents. Injuries sustained while running errands for the business, traveling on a work trip, or even at a company picnic, are typically covered.

This is where skilled workers’ compensation attorneys can help. They understand the law and can advise both employers and employees on what qualifies as a work-related injury.

Coverage isn’t just for “office” work either. Injuries while working remotely, on a business trip, and even certain mental health conditions caused by work-related stress can qualify for workers’ comp.

Here’s the bottom line:

It pays to be knowledgeable. As an employer, you need to understand your obligations. And as an employee, you need to know your rights. Both sides benefit when the truth about workers’ compensation law is understood.

You won’t get fired for filing a claim

Let me break this one to you…

Some employees never file workers’ comp claims because they’re scared their boss will retaliate. This completely defeats the purpose of having workers’ comp insurance. After all, who’s going to seek medical care and lost wages if they think they’re going to get fired?

The good news is, it’s illegal for your employer to retaliate against you for filing a workers’ comp claim. Employers can’t fire, demote, or harass you for seeking benefits you’re entitled to.

That being said, you’re not totally invincible once you file a claim. Employers can still terminate you if they have a legitimate, documented reason unrelated to your claim. If the timing is suspicious or they make up a reason, you may have grounds for a wrongful termination lawsuit.

The best defense is a good offense, or in this case, good documentation. Document everything related to your claim and any changes in the way you’re treated after you file.

Workers’ comp isn’t just for medical bills

Think workers’ comp only covers doctor visits? Well, think again.

This is a huge misconception and one of the most costly, when it comes to lost benefits injured workers should be receiving.

Workers’ comp can help cover:

• Medical expenses (doctor visits, surgeries, medication)
• Lost wages while recovering
• Rehabilitation and therapy costs
• Permanent disability
• Vocational retraining if unable to return to your former position
• Death benefits for survivors

That’s a lot of lost benefits if you don’t know they’re available to you.

Workers’ comp is designed to help you make a full recovery and return to work if at all possible. Not just provide the bare minimum of medical care and send you on your way.

80% of workers compensation claims in the United States of America get approved

The “no fault” system actually means something

Here’s something I love to hear people say…

Workers’ comp is a “no fault” system. Even if I did something wrong that led to my injury, I’m still entitled to workers’ comp benefits. The fact is, workers’ comp is a “no fault” system. Employers and insurance companies are still required to provide coverage, regardless of who is at fault for the injury.

Here’s the catch, though. There are exceptions:

If the injury resulted from horseplay or intentional recklessness, it may not be covered. The same goes for injuries sustained while under the influence of drugs or alcohol. If an employee intentionally injures themselves to collect benefits, that’s insurance fraud and won’t be tolerated.

The point of a “no fault” system is to protect both employees and employers. Accidents happen. Even employees who are doing their jobs correctly can get injured. That’s why there are laws to protect you when it happens.

Small business need coverage, too

Here’s a costly mistake small business owners make…

“I’m a small business, I don’t need to worry about workers’ compensation insurance.” Huge mistake. As soon as you have even one employee in most states, you are required to carry workers’ comp coverage. And for construction companies, even having a single employee means coverage is mandatory.

The penalties for failing to have coverage are steep:

Fines, criminal charges, and civil penalties are all on the table. Plus, if a worker gets injured and you don’t have insurance, you open the door to lawsuits that could bankrupt your business.

Even if you can opt out of workers’ comp in your state, the risks far outweigh the benefits. One serious injury on the job could bankrupt you.

Smart business owners carry workers’ comp, just like they carry liability insurance and worker’s payment insurance.

You don’t have to see the first doctor they send your way

This one really bugs me…

Injured workers don’t know they have a choice when it comes to doctors. Many assume they have to see whatever doctor their employer or insurance company chooses. Not true, in most states you have the right to choose your own doctor or change doctors after an initial appointment.

In some states, you can even predesignate your doctor before an injury occurs. This means you’ll get treated by someone you know and trust rather than an unknown sent by your employer’s insurance company.

Getting quality medical care makes a huge difference in the outcome of your claim. Don’t settle for second best just because you didn’t know you had options.

Time limits are not suggestions

Here’s something I love to share with my clients…

There’s no use waiting to file a workers’ compensation claim until you’re ready. The fact is, every state has strict deadlines for reporting injuries and filing claims. If you wait too long, you could lose your right to benefits altogether.

Injury or not, time is always of the essence. Report the injury to your employer as soon as possible, document everything, and follow up with a claim as soon as you’re able.

In many states, you have only a few days to report the injury and weeks to file the claim. Even if you think the injury is minor, it’s better to be safe than sorry.

Claims denials are not the end

Did you know that an average 20% of workers compensation claims get denied?

Don’t give up if your claim is denied. You have the right to appeal and many denials are overturned on appeal.

Insurance companies hope you don’t know about the appeals process and will just go away. Don’t let them win.

Here’s what they don’t want you to know: Having legal representation dramatically increases your chances of overturning a claim denial. An attorney who specializes in workers’ comp knows the system, and knows how to fight it.

So don’t give up after one denial. You have rights, and benefits are worth fighting for.

Wrapping up

Workers’ compensation law is complex, and as a result, there are a lot of misconceptions about how it works. The myths and misunderstandings we’ve busted above cost businesses and employees thousands of dollars every year.

The bottom line is, when it comes to workers’ comp law, the facts matter. It’s not optional to know your rights as an employee and your responsibilities as an employer.

The system is there to protect both you and your employees. Make sure you know how it actually works.