Michigan lawyer explains what is workers’ compensation and how it works for employees who are hurt on-the-job.
Many people ask “what is workers’ compensation and how does it work?” It is a type of insurance that covers employees who get hurt on-the-job. It was designed as a compromise between labor and business. Employees hurt on-the-job are guaranteed medical treatment and lost wages regardless of fault. Employers are protected from civil lawsuits based upon their negligence. Michigan adopted its first workers’ comp law in 1912.
All employers who have at least 1 employee working 35 hours or more per week are required to purchase workers’ compensation insurance. Employers who fail to purchase workers’ comp insurance are still responsible for payment of benefits. Officers and directors of the company can be held personally liable. Employers can also face civil and criminal penalties for not having workers’ comp insurance.
An employee must report an injury within 90 days and make a claim within 2 years. Payments should begin automatically after the insurance company processes the claim. There is no statute of limitations so an employee can seek workers’ comp benefits in the future if notice and claim were previously made.
Workers’ comp pays medical bills, mileage reimbursement, attendant care, home modification, lost wages, and vocational rehabilitation. Many disabled employees choose to settle their claims for a lump sum cash payment. This money is income tax free and can be used for any purpose.
What is workers’ compensation?
Workers’ compensation covers employees who are hurt at work. It pays medical bills without copayments or deductibles being owed. It also pays lost wages equal to 80% of an employee’s after-tax average weekly wage. It includes money for overtime, discontinued fringe benefits, and even second jobs.
How does workers’ compensation work?
To get workers’ compensation in Michigan an employee hurt at work must notify the employer within 90 days. A claim must be made within 2 years. These requirements are met when an employee asks for workers’ comp benefits. Payment should continue for as long as medical treatment is needed and/or the employee is disabled from working.
Entitlement to medical treatment begins immediately. However, an employee must wait 28 days to choose his or her own doctor. Michigan law requires payment of wage loss to begin on the 14th day. Checks are typically considered late when they are 30 days past due. Our experience shows that poor claims handling is the primary cause of late checks.
What types of injuries and illnesses are covered?
Employees can fall into 1 of 2 categories under workers’ comp. First, employees who have a sudden accident should be covered. An example is when a heavy object is dropped on their foot. Second, employees who develop an occupational illness such as carpal tunnel syndrome or asthma should also be covered.
Occupational disease cases can be difficult to prove if other life factors play a role. Watch out for insurance companies who use the independent medical examination (IME) to say problems are simply age-related.
Bottom line
Workers’ compensation is an insurance that provides a safety net for any employee who gets injured at work or becomes ill as a direct result of their job. It covers medical bills and lost wages regardless of fault. A claim is paid if the employer or insurance carrier agrees that the injury or illness is work-related. Insurance companies and employers can dispute claims and in that case the coverage of your benefits stop.
The best way to protect your legal rights if your claim is being disputed is by hiring an experienced workers’ comp lawyer, who can take all of the necessary steps toward getting your work comp benefits back.
Injured on the job? Call our attorneys now for a free consultation!
If you are injured on the job in Michigan and are wondering what workers’ compensation is and how it works, call now to speak with an experienced attorney, or fill out our contact form for a free consultation. There is absolutely no cost or obligation. We’re 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 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 charge 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:
Michigan Workers’ Compensation Benefits: What Does It Cover?
