Workers' Compensation Disability Benefits: Identify the Incorrect Statement

Workers' compensation disability benefits are designed to provide income replacement and medical care for employees injured on the job. The following statements are generally true: (1) benefits are paid regardless of fault; (2) they cover medical expenses and a portion of lost wages; (3) eligibility requires proof of a work‑related injury; (4) the benefit rate is usually a percentage of the employee's pre‑injury wages; and (5) benefits end when the employee is no longer disabled or has returned to work. The one statement that is incorrect is that the benefit rate is a flat dollar amount set by the employer. In reality, the rate is determined by state law and the employee's earnings, not by the employer's discretion.