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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 we pride ourselves on providing you with care, trust, and responsiveness.

Michigan workers compensation lawyer talks about the new rules that will determine whether a person is an independent contractor or employee.

Workers compensation insurance is required for most employers in the State of Michigan. This is to protect both the employer and the employee should a work accident occur. Lost wages and medical treatment must be paid regardless of who was at fault. In exchange for these guaranteed benefits, the employer receives protection from civil liability.

One of the biggest problems in the system is the misclassification of employees as independent contractors. This is done by unscrupulous employers who want to save money on insurance premiums. It is extremely short sighted as most uninsured employers end up paying more out-of-pocket when they get sued. These employers are also responsible for additional damages in a civil action.

Employee misclassification is a major problem because it reduces the total number of employers who buy into the system. This ends up increasing insurance premiums for good employers who follow Michigan law.

If workers compensation insurance is not available, it is unlikely that an injured employee will ever recover his or her full benefits. Many bad employers simply go out of business and try to hide assets. It also shifts the costs of work injuries to taxpayers who end up paying through government programs and assistance.

Confusion about who is an employee in Michigan

An employee is every person performing service in the course of the trade, business, profession, or occupation of an employer at the time of the injury, if the person in relation to this service does not maintain a separate business, does not hold himself or herself out to and render service to the public, and is not an employer subject to this act. MCL 418.161(n)

The Michigan Supreme Court recently caused even more confusion in Loos v J.B. Installed Sales, Inc. when it found that income tax records are directly relevant to the question of employee status.

We are now finding that more employers are intentionally paying wages as non-employee compensation (Form 1099) in order to avoid purchasing workers compensation insurance and paying benefits.

How the work comp law is changing in 2013

On and after January 1, 2013, services are employment if the services are performed by an individual whom the Michigan administrative hearing system determines to be in an employer-employee relationship using the 20-factor test announced by the internal revenue service of the United States department of treasury in revenue ruling 87-41.

IRS Revenue Ruling 87-41 can be located here. This is a big change in the law and seems to return us to the days of the economic reality test. It appears that employer control over an individual will now be a major factor in the determination of employment status. This change will hopefully reduce the number of employers who try to game the system.

Get help with these statutory changes

Employers would be wise to discuss their concerns with an insurance agent or legal counsel. Failure to carry workers compensation insurance is a serious matter.

If you are an employee who has been denied workers compensation benefits, call us toll free at (855) 221-2667. There is no charge to evaluate your case and you only pay a fee if benefits are recovered.

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:

Help! My employer has no workers comp insurance in Michigan!

07/01/2012

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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.