Your employer is required to report the injury to the workforce commission if they believe it to be valid workplace injury.  So, yes, they can and should report the comp issue.  However, you do have rights.  WC has an ombudsman program where you can get legal support specific to your case.  You are free to go and visit with an attorney, but the onbudsman program is an alternative source of assistance that doesn't cost you anything.  Go visit with that program, have them review your case, and see what benefits or alternative duty you should qualify for while your hand heals to minimize the financial impact on you and your family.  This will also keep you from feeling like you are being railroaded.