Michigan workers’ comp lawyer discusses situations where money must be paid back to the employer or insurance company.
In Michigan, you must pay workers’ comp back if the insurance company overpaid due to errors. Errors can occur when calculating weekly comp rates and when coordinating benefits. Any recoupment for an error would be limited to 1 year back. If a third-party lawsuit is filed and won, you would need to pay the employer and insurance carrier as they are permitted to share in any recovery from a negligent third party.
Lost wages under workers' comp in Michigan
Under state law, disabled employees are entitled to wage loss benefits. The amount paid should equal 80% of their after-tax average weekly wage. This is based upon the highest 39 paid weeks out of the 52 before injury. It includes overtime and even second jobs that cannot be performed anymore. Payments can be coordinated based upon other benefits received.
Why would you have to pay workers’ comp back in Michigan?
In Michigan, you would have to pay workers’ comp back if the insurance company overpaid due to errors. Money will also have to be refunded if a person is successful in a third-party lawsuit.
Make sure to contact an experienced workers’ comp lawyer if the insurance company is trying to collect money for overpayment. These rules can be complicated, and the insurance company will take advantage of any lack of knowledge.
Improper weekly comp rate
One reason why you would have to pay back workers’ comp in Michigan is because insurance companies make errors and overpay weekly benefits. For example, the comp rate might be $520 per week but checks are sent in the amount of $550 per week. This typically happens when the tax filing status or number of dependents is wrong. The insurance company would have an overpayment of $30 per week. No recoupment is allowed beyond 1 year from payment. In this example, it would limit any recovery to $1,560. There is also an argument to be made that voluntary payments should not be distributed in the absence of fraudulent behavior.
Coordination of benefits
It is possible for a disabled employee to receive other cash payments while on workers’ comp. This includes money from unemployment, group disability insurance, disability pension, wage continuation from the employer and Social Security retirement benefits. Insurance companies can take credit for these items under various scenarios. A reimbursement request must be sent to the disabled employee, and they have 30 days to pay back workers’ comp in Michigan. Any recoupment should again be limited to 1 year back.
Third-party lawsuits for pain and suffering
Disabled employees are allowed to sue a third-party who caused the work accident. We frequently see this in automobile accidents or with defective machines. Damages would include pain and suffering. This money is in addition to any Michigan workers’ comp benefits paid by the employer or its insurance carrier. The employer and its insurance carrier are permitted to share in any recovery from a negligent third party. If a lawsuit is successful, a portion of the recovery must be paid back.
Injured while on-the-job in Michigan? Contact our lawyers now
If you were injured while on the job in Michigan and have questions on why you would have to pay back workers’ comp call now at (855) 221-2667 or fill out our contact form for a free consultation with an experienced lawyer. There is absolutely no cost or obligation. We’re here for you.
For more than 40 years, our lawyers have been helping people like you who have suffered from on-the-job injuries in Michigan. We understand the physical, emotional, and psychological hardships you are experiencing from your workplace accident. We also have the skill, experience, and know-how to protect you and get you the best possible payout amount for your case.
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.
Remember, every workers’ comp claim is different and must be negotiated on its own merits. Do not accept any payout amount without fully understanding your legal rights.
Michigan Workers’ Comp Lawyers law firm has consistently secured the largest settlements in the state and is the best choice for your case. We 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 (855) 221-2667 for a free consultation today.
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