Why Would You Have To Pay Back Workers’ Comp?

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Why Would You Have To Pay Back Workers’ Comp?

Michigan workers’ comp lawyer discusses situations where money must be paid back to the employer or insurance company.

In Michigan, you would have to 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 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.

About wage loss benefits

Disabled employees are entitled to wage loss benefits. The amount paid should equal 80% of their after-tax average weekly wage. Payments can also 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. Errors can occur when calculating weekly comp rates and when coordinating benefits. 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. Any recoupment would be limited to 1 year back.

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. This would limit any recovery to $1,560. There is also an argument that voluntarily made 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 a 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. The insurance company can then reduce weekly checks by 50% until the overpayment is recovered. Any recoupment would again be limited to 1 year back.

Third-party lawsuits

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.

Make sure to contact an experienced workers’ comp lawyer if the insurance company is trying to collect money for an overpayment. These rules can be complicated, and the insurance company will take advantage of any lack of knowledge.

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 us now, or fill out our contact form for a free consultation. There is absolutely no cost or obligation. Our attorneys are here for you.

Our attorneys have been exclusively helping injured workers in Michigan for more than 35 years. Our attorneys can help you better understand Michigan work injury 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 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:

How Is Workers’ Comp Calculated?

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.