Do not pass Go! Do not collect $101,584.00!

State of Michigan says it overpays employee $101,584.00 in disability benefits when it fails to confirm receipt of other income.

The Lansing Sate Journal reports a state employee was overpaid more than $100,000 in disability benefits when officials failed to confirm other income with the Unemployment Insurance Agency (UIA). The matter has now been referred to the Attorney General for review and possible action.

State employees filed 9,785 workers’ compensation claims throughout the 2012, 2013 and 2014 fiscal years. A data sharing program is in the process of being implemented to avoid future issues.

This article raises a great point about coordination between workers’ compensation and unemployment benefits. Disabled employees can receive payment under both programs but there is a big catch.

We see this occur when a person cannot do his or her job but is seeking alternate employment. They can perform some light work but have a wage loss for purposes of workers’ compensation. This could allow for payment under both workers’ compensation and unemployment.

Michigan law permits a reduction of workers’ compensation benefits by 100% of the amount received from unemployment. There is no allowance for after-tax value. A claimant would be trading dollar for dollar. This is not an ideal situation but it helps people survive while their workers’ compensation cases are pending.

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 35 years. Call (855) 221-2667 for a free consultation today.

Related information:

Can I get unemployment and workers comp at the same time?

Photos courtesy of Creative Commons, by therichbrooks.

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