Michigan Workers' Compensation Laws

All states except Texas require employers to carry workers’ compensation insurance to pay for injured workers’ medical treatment if they are injured on the job. In Michigan, employers with three or more employees must carry this coverage. The Michigan Labor and Economic Opportunity (LEO) Department handles all workers’ compensation claims for the state.

If you suffer a work injury or illness related to your job, you’re entitled to workers’ compensation coverage. This article explains who is covered and what you need to do to file a workers’ compensation case with the state of Michigan. If you’ve been injured and need to file a workers’ compensation claim, consider speaking with a Michigan workers’ compensation attorney first.

Workers Comp Eligibility

In general, most employees are covered by Michigan’s Workers’ Disability Compensation Act. In Michigan, an employer must carry workers’ compensation insurance if they have three or more employees at any time or one employee working 35 hours or more per week. This includes:

• All private employers, including part-time workers if there are more than three workers
• Public employers and government agencies
• Agricultural and farm employers with three or more employees working 35 or more hours for 13 weeks or more
• Households who have domestic workers (maids, nannies) who work on the premises for more than 35 hours per week

Coverage begins as soon as an employee begins working for the company. There’s no required amount of time that an employee must work for workers’ compensation to apply. Employers not required to carry workers’ comp may provide it voluntarily.

Exemptions

Sole proprietors are not their own employees and aren’t required to carry workers’ comp for themselves. If they hire employees, they must have a policy as soon as they reach the state threshold.

Independent contractors are not considered employees. Michigan uses the IRS multifactor test to determine if someone is an independent contractor or a paid employee. If an employee is misclassified, they may need to speak to a workers’ comp attorney to get their proper benefits.

Partners, LLC members, and corporate officers may be classified as employees and covered by workers’ compensation. They can file a waiver with the state if they prefer to use other insurance.

Covered Injuries

Workers’ comp insurance only covers work-related injuries and illnesses. If an injury happens during regular work hours in the course of your daily job duties, it should be covered by workers’ compensation. Any illness that can be shown to be caused by something you encountered at work or during the course of employment is also covered.

Insurance coverage does not apply to anything that occurs outside the “normal scope of business.” Traveling to and from work is not covered, and injuries that happen during unpaid breaks taken off property are also exempt. However, if you’re required to take lunch breaks in a company break area, your injury may be covered. If your job requires you to travel or you use a company vehicle, workers’ compensation covers you while you’re on the clock.

If you have a pre-existing condition and your workplace injury aggravates or worsens it, workers’ comp will cover any additional treatment necessary. For instance, if you had a back injury before starting the job and reinjured it while performing lifting required at work, workers’ comp will cover treatment for this new injury.

Injuries Not Covered

Workers’ compensation doesn’t cover injuries due to intentional or willful misconduct, such as deliberately ignoring safety requirements or disobeying posted rules. Refusal to follow posted safety protocols may result in your workers’ comp claim being denied.

Horseplay and goofing off that leads to injuries may not be covered, although Michigan courts recognize that some fooling around occurs at most workplaces. If the horseplay crosses the line into recklessness or negligence, you may not be able to use workers’ comp for your injuries.

Types of Workers’ Compensation Benefits in Michigan

Workers’ compensation covers all “reasonable and necessary medical care” after an injury or work-related illness. Your bills are sent directly to the insurance carrier, and you shouldn’t pay anything out of pocket for your coverage. Medical care continues until you can return to work or reach “maximum medical improvement.”

The wage loss benefit is paid after the first full week of missed work. Wages are paid at about 80% of the worker’s average weekly wages (after tax), based on the highest-paid 39 weeks of the last 52 weeks before the date of injury. A more in-depth explanation and a Wage Calculator are available on the LEO website. If a worker can’t return to their previous job, they may receive vocational rehabilitation and job retraining for up to two years to help them find new employment or train for a new position within the company.

Temporary Total Disability

If you can’t work while you recover but will be able to do so at some point, your doctor may place you on temporary total disability. Workers’ comp will pay you disability benefits of up to 80% of your average weekly wage. The state pays up to 90% of the state average wage, about $1,201 in 2026. There is no absolute minimum, but state law guarantees at least 25% of the state average weekly wage. This payment continues until you are removed from temporary total disability.

Temporary Partial Disability

If you can work with specific limitations, such as reduced hours or light duty, your doctor can place you on temporary partial disability. You must accept any suitable job offer, or risk losing your wage-loss benefits. If your employer cannot meet the accommodations or has no suitable position, you may need to remain off work. Your medical benefits continue during this period until you can return to full work capacity.

Permanent Disability

If you reach maximum medical improvement and remain unable to return to your previous job position, you may be considered permanently disabled. Michigan workers’ comp has “specific loss” categories for partial permanent disability and total permanent disability. Permanently injured employees may receive up to 800 weeks of disability payments at 80% of their wages, which can be extended for life, or a lump-sum payment if they choose.

Specific Loss and Permanent Partial Disability involve loss of a body part, such as a hand, eye, or leg. The worker can continue working at another job, but will likely need retraining and additional rehabilitation. Permanent Total Disability is an extreme case. It involves injuries such as losing both eyes or multiple amputations. These often prevent a return to gainful employment.

Death Benefits

Death benefits are paid to spouses and minor children if a worker dies from a work-related injury or illness. The benefits help pay for funeral expenses and provide financial assistance to eligible dependents. Spouses receive 80% of the worker’s average weekly wage after taxes, for up to 500 weeks. Minor children receive payments until they reach the age of 18. Payments can continue to the age of 21 in some cases, and indefinitely for adult children with physical or mental disabilities. A lump-sum funeral allowance of up to $6,000 is available immediately after the worker’s death.

How To File a Michigan Workers’ Compensation Claim

Notify your employer immediately if you’re injured on the job. You have up to 90 days to report the injury, but report it as soon as possible. Your medical benefits should begin immediately, but it takes seven days, including weekends and holidays, before your wage replacement benefits begin.

Always report your injury to your employer in writing. Don’t assume that because you were treated at work or transported from your job site, your employer knows about your injury.

Your employer may designate a doctor for you for the first 28 days of treatment. After that, you may request your own doctor by filing a form with the LEO.

Not all injuries and illnesses appear immediately, so you have two years to file a formal workers’ compensation claim. For instance, suppose you were driving a forklift in your company warehouse and accidentally hit a pillar. You suffered a minor neck injury, which you reported to your employer and were treated by the company first-aid office. Over the next few weeks, your neck started to hurt worse, and the following month you couldn’t even turn it. A trip to the company doctor revealed a torn ligament. Because you reported it promptly, you can still file a workers’ compensation claim and receive treatment under your employer’s policy.

What if My Workers’ Comp Claim Is Denied?

If your claim is denied or you dispute the insurance company or employer’s decision, you may file an application for mediation or a hearing with the bureau within two years of the injury. If the dispute is not resolved at the mediation, the case is assigned a trial date before a workers’ compensation judge. You may represent yourself during this process, but an attorney can be extremely helpful in meeting deadlines, gathering evidence, and representing you against the insurance company‘s attorneys.

Common Reasons for Denial

The most common reason a claim is denied is for missed deadlines. If you don’t notify your employer about a work-related injury within 90 days, or file a claim within two years of the injury, it can be automatically denied.

Other common reasons for denial may include:

• Disputed cause of injury: The insurer may argue that the injury didn’t occur at work or that it was due to a pre-existing condition and not aggravated by your working conditions. Timely reporting can help avoid this. Michigan insurers cannot deny coverage for pre-existing conditions, but you will need strong medical records to establish your prior condition and how your job worsened it.
• Medical examination conflicts: Insurance companies may demand an independent medical exam if they believe you’re fully healed or dispute the nature of your injury. Your employer can send you to their own doctor for the first 28 days after the injury. After that date, you can request your own doctor.
• Failure to follow medical instructions: If you don’t follow your doctor’s orders for treatment and rehabilitation, miss appointments, or return to work too soon, you can lose your workers’ comp benefits or give the insurer grounds to dispute or deny your claim. Follow the doctor’s instructions to the letter.
• Incomplete or inaccurate records: Any gaps in your medical records can make it difficult to prove that a pre-existing condition is related to your current injury. Discrepancies between your initial statement and later medical reports will make investigators take a second look at your file.

Keep all documents involved with your claim, including medical bills and instructions. If you need to contest a denial, having the receipts can make a big difference.

Misclassification

Employers may misclassify paid employees as independent contractors to avoid paying benefits, including workers’ compensation benefits. If you believe your employer has declared you an “independent contractor” while treating you as a paid worker, or if you are being held out as a contract worker, it’s time for legal representation. Contact a workers’ compensation attorney as soon as possible.

How To Appeal a Denied Claim

Your time to appeal the denial is limited, and you’ll need to submit specific types of documentation and paperwork. If you’re not sure what you need to do, contact a workers’ compensation attorney.

You have 30 days to appeal the initial denial of a claim. This appeal does not allow you to submit new evidence. You may only request a review of the original decision. Your attorney can make the legal arguments needed to show what the appeals board should review and why the original decision was incorrect. If you miss the 30-day deadline but can “show cause” why it should be extended, you may be granted another 15 days to file a request for extension.

The state may send you and the insurance company to mediation first. If you can’t reach an agreement, the next step is a formal hearing before an administrative law judge to decide whether the denial was correct or should be overturned.

Get Legal Help With Your Michigan Workers’ Compensation Claim

The Michigan Workers’ Disability Compensation Act guarantees payment for medical bills and lost wages for all Michigan workers. Navigating the process is harder than it looks at first glance. If you’ve been hurt on the job and need legal advice, contact a Michigan workers’ compensation attorney who can help you with the calculations and paperwork in your claim.