Michigan Worker's Compensation Benefits
By Aaron Larson
Law Offices of Aaron Larson
July, 2003
Important Notice: The following overview of Michigan's worker's compensation (workmans comp) benefits is presented on an as-is basis. This information is believed accurate as of the date of authorship, but is not intended to provide a complete analysis of available benefits and may not reflect subsequent changes in the law. For a full review of Michigan's worker's compensation law, or for a determination of how the law applies to a specific worker, please consult a worker's compensation attorney licensed to practice in the state of Michigan.
Contents
- Introduction
- Special Employment Situations
- Medical Benefits & Choice of Physician
- Disability Benefits Provided
- Death Benefits Provided
- Limits on Attorney Fees
Introduction
Michigan's system of worker's compensation (workman's comp) is compulsory, meaning that employers are required to provide worker's compensation insurance for their employees. Worker's compensation insurance may be provided through a private insurance carrier, or employers may self-insure. Waivers may be permitted.
Special Employment Situations
Employers with fewer than three employees are exempt from the state's worker's compensation act. Agricultural employers with three or more regularly employed employees, who worked at least thirty-five hours per week for thirteen consecutive weeks over the prior fifty-two week period, must provide worker's compensation coverage. Any household domestic worker is covered by the state worker's compensation act, with the exception of those employed for less than thirty-five hours per week for thirteen weeks or longer during the preceding fifty-two weeks.
Medical Benefits & Choice of Physician
Full medical benefits are provided to employees entitled to worker's compensation benefits, with no time or monetary limits. The employer selects the initial physician who will provide care, with the employee obtaining free choice of provider after a period defined by law.
Disability Benefits Provided
Payments are made for temporary total disability (TTD) in an amount determined by a percentage of the worker's wage, subject to a weekly maximum payment amount. Payments continue for the duration of the disability. Benefits are subject to offsets for benefits received through unemployment insurance, Social Security, or an employer disability, retirement, or pension plan.
Payments are made for permanent total disability (PTD) based upon a percentage of the worker's wage, subject to weekly minimum and maximum payment amounts. Payments for PTD continue for the duration of the disability. Benefits may be subject to an offset for Unemployment Insurance benefits.
Payments for permanent partial disability (PPD) are made based upon a percentage of the worker's wage, subject to weekly minimum and maximum payment amounts. Payments for PPD continue for the duration of the disability.
Scheduled awards are paid in addition to total temporary disability benefits starting directly after the accident.
Physical and vocational rehabilitation benefits are available.
Occupational hearing loss is not compensable, but a worker who has suffered a hearing loss may be eligible for aural rehabilitation.
Death Benefits Provided
Death benefits are payable to an employee's surviving spouse, or spouse and children, based upon a percentage of the employee's wages, subject to a cap. A minimum benefit is provided regardless of the employee's earnings. A burial allowance is available.
Limits on Attorney Fees
Attorney fees for claimants for cases resolved through trial, appeal, or as the result of voluntary payment are set by rule at 30%, based upon the employee's rate of benefits up to two thirds of the state average weekly wage. If the case is resolved through a redemption settlement, attorney fees for claimaints are limited to 15% of the first $25,000 and 10% of the balance.
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