Michigan Workers Compensation: FAQ

Workers compensation in Michigan is designed to protect injured workers by providing cash payments for medical expenses, lost earnings and more. We hear many of the same types of questions from injured workers; below are some frequently asked questions and answers about Michigan workers compensation.

1. What are the different types of benefits provided by the Workers Compensation Act?

The most common benefits provided by workers compensation are payments to replace lost wages/earnings, medical expenses as well as vocational rehabilitation. Additionally, there are death and specific loss benefits available under varying circumstances. Your attorney will be able to tell you what types of compensation are available for your case.

2. What employees are eligible to receive workers compensation payments?

Any employee that is injured while working, whether at the job site or travelling for work, is entitled to receive compensation.

3. Is there a time limit for filing for workers compensation payments?

While there is no specific statute of limitaitons for workers compensation benefits in Michigan, there are time limits regarding notifying an employer and making a claim. Your employer should be notified within 90 days of the injury, and a claim must be filed within two years.

4. How will my lost earnings be replaced? How is the compensation amount calculated?

To determine the amount of compensation available for lost earnings, the average weekely wage (AWW) is used. This is calculated by averaging the highest 39 weeks of pay out of the most recent 52 weeks of pay earned. Once an AWW has been determined, workers compensation will pay 80% to the injured worker.

5. How long will I be able to collect medical benefits?

Depending on the situation, medical benefits may be temporary or permanent.

6. If I recieve other benefits, such as Social Security, will these be taken out of any workers compensation payments?

Yes, some benefits will offset any payment due through workeras compensation. Social Security payments for example, will be offset at 50%.

7. When will I begin to receive workers compensation payments?

Workers compensation payments are due to be paid 14 days after the injured workers employer is notified of the eligible injury. Additionally, the employee must have missed 7 days of work.

8. How are the employers and employees attorneys paid?

Most commonly, an employer will pay an hourly rate, while the injured workers attorney will work on a contingency fee.

9. Can a resident of a different state file a claim for Michigan Workers Compensation benefits?

For worker injuries that occur in Michigan, it is possible to apply for and receive payments from Michigan Workers Compensation. However, any payment from the injured workers home state will be offset against any payments from Michigan state.

10. What about Michigan employees that are injured outside of the state?

In most cases, Michigan employees that are injured out of state, but while under employment contract of a Michigan employer, will be compensated by Michigan Workers Compensation.

11. Which employers must carry workers compensation insurance?

Every employer in Michigan must pay into workers compensation, or obtain private insurance if approved.

12. What employers are coverd by the act?

Generally, any employer with 35 or more employees is covered by the Workers Compensation Act.

13. My employer offered me Restricted Work, what is it?

Restricted work can be offered by the employer, and must be within the capabilities of the injured worker.

14. How are disputes between an injured worker and his/her employer handled?

Either of the two parties is able to file a petition to have the case heard by the Workers Compensation Bureau. This is usually initiated when one of the parties is not reciveing benefits or cooperating withvocational rehabilitation or restricted work.

15. What is a redemption for a workers compensation claim?

A redemption is the final settlement between the parties in a workers compensation claim. It is intended to be the the final solution of the case, and must be approved by a magistrate.