Penalty For Late Workers’ Comp Payment Explained

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Michigan lawyer explains the penalty for a late workers’ comp payment when the insurance company refuses to pay weekly checks or medical bills.

Penalty For Late Workers' Comp Payment Explained

I have written extensively about the challenges our clients face when they are hurt on-the-job. It can be devastating when the primary wage earner is disabled and unable to earn a living. Most people are living paycheck-to-paycheck and even a short disruption can mean financial disaster. Here is some information about the Michigan workers’ comp penalty for late payment.

Wage loss benefits are supposed to begin on the 8th day of disability. This waiting period includes holidays, weekends, and even unscheduled workdays. It is a safety net for employees who find themselves unable to work because of injury. The first check should be paid a week after entitlement begins. Missing or late checks can be catastrophic and the penalty for a late Michigan workers’ comp payment is to help ensure payments arrive on time. Unfortunately, it can take some insurance companies weeks or months to process a claim. This can be delayed even more if the employer refuses to cooperate.

Medical bills are also supposed to be paid under workers’ compensation. All reasonable and necessary medical treatment should be paid without any copays or deductibles being owed. Employees have the legal right to choose their own doctors after 28 days from the start of medical care. Insurance companies who drag their feet approving medical treatment or paying medical bills jeopardize access to medical care. We have seen clients who are unable to get medical care simply because the insurance adjuster will not return a telephone call. Some clients find themselves in the absurd situation where medical treatment has not been authorized and they are unable to get a disability slip to prove continuing entitlement to wage loss. This results in a cut-off for no good reason.

What is the penalty for a late workers’ comp payment in Michigan?

Michigan law allows a penalty for a late workers’ comp payment in which a person can get $50 per day up to $1,500 total for weekly checks that are late. A demand seeking penalties is usually enough to get the attention of the insurance company. Seeking this penalty is an easy way to get the insurance company to pay attention. Most insurance companies will still refuse to pay even when they are clearly in the wrong.

In Michigan, a penalty for a late workers’ comp payment may also apply to medical bills that are not paid within 30 days. The insurance company must receive notice of nonpayment by certified mail. This penalty is limited to $50 or the amount of the bill if it is less.

Wath out for insurance companies

Watch out for insurance companies who dispute claims for no good reason. In Michigan, the penalty for a late workers’ comp payment is not owed if there is an ongoing dispute. Even frivolous defenses allow the insurance company to escape the penalties. Disabled employees who find themselves in this awful situation should consider filing an Application for Mediation or Hearing. They can seek an expedited 60-day trial status with the magistrate. Our experience shows these 60-days cases can be used to pressure the insurance company into paying a lump sum cash settlement.

We recommend that you contact an experienced Michigan workers’ compensation lawyer if benefits are not being promptly paid. Missing or late checks are often a warning sign that a claim is going to be disputed or denied.

Injured on the job in Michigan? Call our attorneys now!

If you were injured while on the job in Michigan and have questions about your claim and the penalty for a late workers’ comp payment, now or fill out our contact form for a free consultation. There is absolutely no cost or obligation. Our attorneys are here for you.

Our attorneys have been exclusively helping injured workers in Michigan for more than 40 years. Our attorneys can help you better understand Michigan work injury laws and what happens after someone has been hurt on the job. To see what our own clients have to say about the caring, compassion, and communication they received from us, you can read in their own words about their experience here on our testimonials page from clients we have helped.

Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 40 years. Call (844) 316-8033 for a free consultation today.

Related information:

Where Is My Workers’ Comp Check?

Author Bio Jeffrey Kaufman

Author
Jeffrey E. Kaufman
Michigan Workers Comp Attorney

Jeffrey E. Kaufman has extensive experience in workers compensation cases and has recovered millions of dollars in benefits for his clients. He believes all injured workers deserve to be on equal footing with insurance companies and employers, and fights tenaciously so their rights are secured and protected.


“Jeff also helped me with getting my Blue Cross bills paid. I would absolutely recommend him and the whole firm. Jeff and the firm did everything they were supposed to do for me and my case.”
Ricardo Perfetto

Hundreds of 5-Star Reviews

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Get Help From our Michigan Workers’ Comp Lawyers Today

You’re not alone. Our Michigan workers’ comp lawyers have been called the best in the state, and our clients love how they’re treated with care, respect, and responsiveness. We will give you the time you need, we will explain your legal rights, and we will always treat you with respect.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Injured? It’s Time to Get Some Answers

Don’t let the insurance adjuster push you around. Request your free consultation today.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.