What can be done about bad employers who avoid paying required workers’ compensation benefits?

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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.

Steps must be taken to stop uninsured employers from avoiding responsibilities under workers’ compensation and how we can reward businesses who play by the rules.

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The Detroit News is reporting on a new executive directive from Governor Gretchen Whitmer that would prioritize state contracts based upon whether individual companies “are good stewards of the state.” The “Michigan Jobs First” directive would add factors such as labor and environmental histories, pay, benefits and placement in economically-disadvantaged zones. The stated goal is to grow businesses and create jobs right here in Michigan. The State of Michigan signed 8,813 contracts totaling about $2.14 billion last year.

This news comes on the heels of Attorney General Dana Nessel announcing a new unit that will investigate payroll fraud. She is trying to stop businesses who misclassify employees to avoid paying overtime, health benefits, or workers’ compensation. We have blogged about this problem on several different occasions.

We are thrilled to see Governor Gretchen Whitmer and Attorney General Dana Nessel take a proactive approach on these issues. Michigan businesses who play by the rules should be rewarded with lucrative state contracts. Here is our take on employee misclassification and other areas where more needs to be done.

Employee misclassification

Employee misclassification happens when a business intentionally calls its employees “independent contractors” regardless of their employment status. They are paid wages with a 1099 tax form and no income withholding occurs. Independent contractors are not covered under workers’ compensation and they are on their own if an accident happens. Medicaid and other state resources end up being used instead. Employee misclassification also puts other businesses at a financial disincentive, and it needs to be stopped.

Uninsured employers

Michigan law requires that employers purchase workers’ compensation insurance. It covers lost wages and medical care for employees hurt on-the-job. It is a safety net the helps employees after a workplace accident. We see many bad employers fail to purchase required workers’ compensation insurance just to save a few bucks. Penalties for this behavior include civil fines and even criminal charges. Unfortunately, these penalties are rarely sought, and employers get away with breaking the rules. We hope the attorney general takes a more aggressive approach on this issue and sends a message that this behavior will not be tolerated.

Refusing to accept claims

We get constant telephone calls from employees hurt on-the-job who cannot get their employers to make a workers’ compensation claim. They are given the run-around when asking about their benefits. Employers discourage claims to save money and keep insurance premiums low. Promises to cover medical care and lost wages under the table are rarely kept. The good news is that employees hurt at work can file their own claims with the State of Michigan. It is important to speak with an experienced workers’ compensation lawyer should this need to be done.

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 (844) 316-8033 for a free consultation today.

Related information:

Employee misclassification is a big problem that must be fixed!

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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.