Injured on the Job / Workers' Compensation

Michigan employees are protected by an important law known as the Worker’s Disability Compensation Act of 1969 (WDCA). It requires payment to individuals who are hurt on-the-job, regardless of fault. Some employers purchase insurance to cover these benefits while others get approval from the state to be self-insured. Employers who do not comply with the law can be found personally liable.​

Personal injuries that are attributable to a single event

Occupational diseases

Repetitive trauma

Weekly Wage Loss Benefits​

Medical Benefits​

Vocational Rehabilitation Benefits​

Total and Permanent Disability Benefits​

Specific Loss Benefits​

Death Benefits​

Weekly Wage Loss Benefits: Maximums are limited by the state average weekly wage (SAWW). In 2016, 90% of the SAWW was equal to $842 per week and was the maximum compensation rate.​

Medical Benefits: All reasonable and necessary medical treatment is covered without deductibles or co-pays. Employees are required to wait 28 days before selecting their own doctor.​

Vocational Rehabilitation: Employees can seek a maximum of 2 years for retraining or education.​

Wage loss benefits are paid to employees who show an inability to earn maximum wages in a job suitable to their qualifications and training. If a person can only perform a lesser paying job, differential wage loss benefits are owed. Benefits can be reduced if a person has a “wage earning capacity” but is not working.​

Medical benefits cover all reasonable and necessary treatment. This includes doctor visits, prescription medications, attendant care, physical therapy, injections, hospital stays, and surgery. It can also include dental care, prosthetics, eyeglasses, hearing aids, wheelchairs and other appliances necessary to cure or relieve the work injury.​

Vocational rehabilitation includes payments for education and retraining if necessary to return an employee to the workforce​

A person must be off work for at least 1 week before entitlement to wage loss begins. However, if disability lasts longer than 2 weeks, benefits are covered from day 1. Checks are not typically considered late until 30 days past due. According to statistics compiled by the Agency, the average wait time was 17 days from becoming due.​

Medical benefits begin immediately. However, an employee cannot select his or her own doctor until 28 days from the start of medical care.​

Generally, workers receive 80% of the after-tax value of their wage loss. A determination is made about the worker’s “average weekly wage” before the injury. The worker would then be entitled to 80% of the after-tax value of that average weekly wage. The average weekly wage is based on the highest 39 weeks of wages during the 52 weeks immediately prior to the injury. Under certain circumstances, the value of fringe benefits may be included in determining the average weekly wage. The maximum weekly wage benefit rate is 90% of the state average weekly wage for the year prior to the injury. Wage loss and medical benefits can be lifetime benefits, depending upon the severity of the injury and loss of wages.​

Michigan law requires payment to individuals who are unable to work because of a workplace accident or injury. This is to compensate for lost wages during any period of disability. Wage loss benefits are based upon a percentage of earnings.

​An injured worker is paid benefits equal to approximately 80% of the after-tax value of what they were earning at the time of injury, or about 60% of gross pay. It is calculated by averaging the worker’s total wages from the highest paid 39 weeks of the 52 weeks immediately preceding the date of injury. Tax status, number of dependents, and discontinued fringe benefits also factor into this calculation.​

Wage loss benefits are capped at 90% of the state-wide average weekly wage. The 2016 maximum weekly benefit is $842.00.​

Weekly wage loss benefits can be reduced or terminated in three ways:​

The injured worker rejects a bona fide offer of reasonable employment without good and reasonable cause.​

An injured employee finds post-injury employment earning the same or more than he or she did before the injury.​

It is determined that the injured employee has a “wage earning capacity” and is only partially disabled.​

A physician selected by the insurance company says the injured worker is not disabled and can return to work.​

A physician selected by the insurance company says an employee needs no additional medical treatment.​

The WDCA’s medical benefits guarantee provides that employers will pay for the medical care necessitated by a worker’s work-related injury or disease. This includes medical services and medicines, nursing care, medical appliances (dental service, crutches, artificial limbs, etc.) and rehabilitation or treatment.​

To be eligible for workers’ compensation medical benefits, an injured worker must establish that the medical care sought is reasonable and necessary. Medical benefits must be provided to an injured worker for as long as the worker needs them — which could be the rest of the worker’s life.​

Not initially. For the first 28 days after an injury, the injured worker must treat with a physician of the employer’s choosing. After 28 days, the employee may treat with a physician of their own choosing after notifying the employer.​

Attendant care services are available for people who need help with daily activities. This includes getting dressed, using the bathroom, taking medications, preparing meals, and other tasks. Family members can receive payment up to 56 hours per week. A professional can also be used and is not limited in hours.

The WDCA’s vocational rehabilitation benefits guarantee provides that an injured worker shall be provided those vocational rehabilitation services that are reasonably necessary to restore him or her to useful employment. Services covered include counseling, training, job placement assistance, transportation costs, and tuition reimbursement.​

These benefits are provided for 1 year, but can be extended for 1 additional year with approval of the Workers Compensation Agency.​

An injured worker must provide notice of injury to the worker’s employer within 90 days after the injury occurred.​​

An injured worker has 2 years to file a claim for workers’ compensation benefits.​​

The WDCA is a legislative compromise between employers and workers. In return for the employers’ promise to provide injured workers with the benefits described above, regardless of fault, workers promise to relinquish their right to sue employers for injury-related pain and suffering — except under very limited circumstances, such as intentional injury by the employer.​

Yes. Workers’ compensation benefits become disputed when the employer or its insurance company refuses payment. The injured worker or their dependent(s) can start a formal process by filing application for mediation or hearing with the Workers Compensation Agency.​

Employees can trade wage loss and medical benefits for a lump sum cash payment. The amount will depend on several factors including age, extent of disability, and future medical costs.​