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Workers' Compensation Summary - Michigan

The Department of Labor & Economic Growth, Workers' Compensation Agency (WCA), administers the Michigan Workers' Disability Compensation Act. The following brief summary is intended to provide a general overview of Workers' Compensation coverage and benefits in Michigan. See the separate topic for help with acronyms. For further information contact your local or state Workers' Compensation Program office. This information is based on data originally provided by the U.S. Department of Labor and updated by WCA, and is current as of January 2011.

In Michigan, compensation benefits are adjusted annually, and changes become effective January 1 of each year. The rates shown below are in effect from January 1, 2011 to December 31, 2011.

Type of Law and Insurance Requirements

In Michigan, workers' compensation is compulsory, and some waivers are permitted. There is a competitive state fund. Employers may insure through private carriers, self-insurance, or through groups of employers. There is an exemption for employers with fewer than 3 employees.

Coverage of Agricultural Workers

Covers agricultural workers whose employers employ 3 or more regularly employed employees for at least 35 or more hours for 13 consecutive weeks during the previous 52 week period.

Coverage of Domestic Employees

Covers any household domestic worker except those employed for less than 35 hours per week for 13 weeks or longer during the preceding 52 weeks.

Medical Benefits

Full medical benefits are provided with no time or monetary limitations.

Benefits for Temporary Total Disability (TTD)

The percentage of worker's wage paid is 80% of worker's spendable earnings. For weekly payments, there is no minimum and the maximum is $742, 90% of SAWW. The maximum period of payments is the duration of disability. WC benefits are subject to reduction by UI and Social Security benefits, and by those under an employer disability, retirement, or pension plan.

Benefits for Permanent Total Disability (PTD)

The percentage of worker's wage paid is 80% of worker's spendable earnings. For weekly payments, the minimum is $207.18 (25% of SAWW) and the maximum is $742, 90% of SAWW. The maximum period of payments is the duration of disability. WC benefits are subject to reduction by UI.

Benefits for Permanent Partial Disability (PPD)

The percentage of worker's wage paid is 80% of worker's spendable earnings. For weekly payments, the minimum is $205.84 (25% of SAWW), for scheduled injury only, and the maximum is $742, 90% of SAWW. For non-scheduled injuries, the maximum period of payments is the duration of disability and there is no maximum payment amount. WC benefits are subject to reduction by UI.

Disfigurement Benefits

Michigan has no specific provision for payment of disfigurement benefits.

Offset Provisions in State Laws

Section 418.354--Temporary total disability benefits will be reduced by 50 percent of any Social Security benefits; and by amounts received after taxes under any self-insurance plan, wage continuation plan, pension or retirement plan provided by the employer to which the employee does not contribute.

Section 418.354(1)(f)--Temporary total disability benefits will be coordinated with those from employer contributions to a qualified profit sharing plan where the employer does not provide a pension plan.

Section 418.358--Offsets temporary total, permanent total, and permanent partial disability benefits under the Workers' Compensation Act dollar for dollar by unemployment compensation benefits.

Contact Information

Office Location
Workers' Compensation Agency
State Secondary Complex
General Office Building
7150 Harris Drive, 1st Floor, B-Wing
Lansing, Michigan 48913

Mailing Address
Workers' Compensation Agency
P.O. Box 30016
Lansing, Michigan 48909

Phone: 1-888-396-5041

Internet: http://www.michigan.gov/wca/

Additional Information

Free software, the Workers' Comp Calculation System from WCA, can be used to calculate and validate workers' compensation payments in Michigan. The software is updated annually to include new rate tables. You can download the software program and its Help manual from:
http://www.michigan.gov/wca/0,1607,7-191--108224--,00.html

Historical compensation benefit levels are available online at:
http://www.michigan.gov/wca/0,1607,7-191--38774--,00.html

The Workers' Disability Compensation Act of 1969, Act 317 of 1969, is available in PDF format (requires Adobe Acrobat Reader) online at:
http://www.michigan.gov/documents/cis_bwuc_act498_29374_7.pdf

Workers' Compensation Administrative Rules are available online at:
http://www.state.mi.us/orr/emi/admincode.asp?AdminCode=Single&Admin_Num=40800031&Dpt=CI&RngHigh=

Other State's Summaries

Curious about the Workers' Compensation program in another state? Want to see a summary like this one? Click here to select another state's summary.

Source

Information for this topic was drawn from pages of the WCA website at:
http://www.michigan.gov/wca/

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