WORKMAN'S COMPENSATION

The Michigan system of Worker’s Compensation was first created in 1912 when Michigan’s legislature enacted the Worker’s Compensation Disability Act.  Over time,  Michigan law evolved through modification and judicial interpretation.  At present, the Michigan Worker’s Compensation law requires almost all Michigan employers to provide insurance coverage to employees that suffer on the job injuries. 

In short, Michigan law provides for mandatory insurance to cover an employees “economic” damages.  Non-economic damages such as the emotional pain and suffering of an injury are not covered by Michigan Worker’s Compensation

Tthe Michigan Worker’s Compensation Bureau was recently reorganized and consolidated into the Michigan Workers & Unemployment Bureau.  This new office combines the handling of both unemployment claims and claims for injured workers. 

Who is NOT covered by the Worker’s Compensation Act.        

Independent Contractors - An increasingly large percentage of the workforce is now considered to be “Independent Contractors”.  Independent Contractors are probably the largest category of Worker’s that are generally not covered under the Worker’s Compensation Disability Act. However, caution needs to be used in analyzing the situation of a purported“independent contractor”.  By way of example, employees are sometimes incorrectly labeled independent contractors.  It can be an area of great dispute whether an individual works set hours, in an ongoing capacity, with some degree of benefits can be fairly characterized as an independent contractor.           

Agricultural Workers - Another “Class” exempt from the Worker’s Compensation Disability Act is defined as Agricultural Workers. The reason for this exemption is that separate laws or statutory guidelines provide the remedies-or lack of remedies-available to these workers. It should be noted that some agricultural workers may not be working in the capacities that define the agricultural work exceptions to the Worker’s Compensation Act.             

Federal Employees - Federal Employees are also not generally covered under Michigan Worker’s Compensation Law. This group includes, for example, postal workers and VA Hospital employees.          They are covered by the Federal government under federal law. See:  http://www.dol.gov/esa/regs/compliance/owcp/91-18.htm 

Small Business Employees - Certain small businesses with employees of three or less may also be exempt from the requirement of carrying Workers Compensation insurance.  You should check with your employer and if there are any questions concerning coverage you may want to seek legal advice.

The Michigan Worker’s Compensation Disability Act bans an employee from suing an employer. There may be other options open and you should see legal advice to identify these options.

For detailed overview of the Act,

Brochure

Your Rights and Responsibilities under Workman’s Compensation.

In Spanish:

Remind individual that workman’s compensation does not pay for all their medical care needs (e.g. if they have diabetes and broke their leg, the Workman’s comp only pays for services related to the broken leg not diabetic supplies.

Remind the patient and/or family that the compensation salary reimbursement might not equal their typical take home pay for a number of reasons. They should contact the human services office at their place of employment to find out specific information about what they need to do to get their benefits started in a timely manner.

Remind the patient and family that they will be responsible for paying for prescriptions and other expenses and then seeking reimbursement from the Workman’s Compensation carrier/insurance. If discharged from the hospital with expensive medications, arrangements might need to be made ahead of time to “bill the patient” . Explain that when they get reimbursed, they must reimburse the hospital.

For complex and expensive injuries, a case manager is frequently assigned. Explain to patient and family the role of the case manager. Providers of Compensation coverage have preferred providers and will want to be involved in the discharge planning process with Practice Management.

Patient needs to know they might be eligible for Vocational Rehabilitation Services under Workman’s Compensation. In English  Vocational Rehabilitation for Injured Workers... help in returning to work (PUB-003) In Spanish Para una copia del folleto vocacional de la rehabilitacion, vea por favor Compensacion Para Trabajadores...Una Guia para Empleados (PUB-003