What is a common misperception regarding workers' compensation costs?

The belief that only employers are responsible for coverage in workers' compensation is rooted in the structure of the workers' compensation system itself. Under this system, employers are required to provide insurance that covers their employees for work-related injuries and illnesses. This is a no-fault system designed to protect both employers and employees: employees receive benefits without needing to prove negligence on the part of the employer, and in return, employers are generally shielded from employees suing them for these injuries.

While there may be cases where employees can contribute to certain types of insurance or benefits, the fundamental principle of workers' compensation is that it is an obligation of the employer to provide coverage, eliminating direct costs for employees. In addition, the variable costs tied to an employer’s workers' compensation insurance are primarily based on industry risk factors and claims history rather than individual employee performance.

Understanding this nuance helps clarify why the assertion that only employers are responsible for coverage encapsulates a key aspect of workers' compensation and addresses a common misunderstanding about cost-sharing.