One Year Anniversary for Electronic Payment Rule

Has the electronic payment rule made a difference in people’s lives or improved the Michigan workers compensation system? We remain skeptics.

It has been one year since LARA adopted the electronic payment rule. This allows employers and insurance companies to pay wage loss benefits through electronic transfers and debit cards.

We supported this rule change hoping it would make the workers compensation system better. So what has changed after a year? Not much that we can see.

Our clients continue receiving paper checks. Missing and late payments remain a serious issue.

Red Flags

We tell our clients that a missing or late check might indicate a problem. This is a red flag that wage loss benefits could be disputed.

Watch out for case workers who insist on sending you to an independent medical examination (IME) before starting or resuming your workers compensation. These doctors are not on your side and it is likely that benefits will be disputed

Your benefits cannot be stopped unless the insurance company files a Notice of Dispute. This is a formal document with the State of Michigan.


Michigan law authorizes a $50.00 per day penalty up to a maximum of $1,500.00 if wage loss benefits are not paid within 30 days of accrual. Penalties are not available if there is an ongoing dispute.

Call (855) 221-2667 to speak with one of our workers compensation attorneys in Michigan. We can help you solve minor issues before they turn into major problems.

Alex Berman is the founder of Michigan Workers Comp Lawyers. He’s been representing injured and disabled workers exclusively for more than 35 years. Alex has helped countless people obtain workers compensation benefits and never charges a fee to evaluate a case.

Related information:

Video: 5 red flags in a Michigan workmans compensation case

Photo courtesy of Creative Commons, by Tax Credits.

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