Worker’s Compensation

 Occupational Safety and Health Administration  Make and enforce regulations to ensure safe working conditions  Can heavily fine or shut down workplaces if not in compliance  Complaints can be filed by employees on a OSHA-7 form or online anonymously

 Created as a substitute for negligence suits  Insurance system that provides wage replacement, medical, and rehab benefits to workers hurt on the job

 Employee must have been acting in scope of employment  Injury must be job related Ex: Hernia from laborer installing heavy equipment vs clerical worker suffering a hernia after bending over to pick up something

 Requires all employers to have insurance either from commercial insurance carrier or by having state-approved self insurance status

 Employer maintains own fund from which it pays workers’ compensation or employer can participate with employers from same industry to pool their resources

 The riskier the job the more expensive the insurance  The more claims brought forth, the higher the insurance costs  NO COST TO EMPLOYEE

 Injured worker is entitled to: Cost of medical care Vocational rehab services (training for another job) Recovery of loss of wages  80% of their highest post tax earnings (capped at $742/week)

 All medical expenses from job related injuries must be paid by employer  First 10 days of treatment employer has right to choose physician  After 10 days employee has right to change physicians but must notify employer

 Employee must immediately notify employer of job related injury  Employer must file report with MI WCA (Michigan Workers Compensation Agency) Form 100

 MAY NOT COLLECT BOTH UNEMPLOYMENT AND WORKERS COMPENSATION

 Employee cannot sue employer who has workers compensation insurance UNLESS: Employer commits intentional tort or employer negligence

 Less than 3 employees  Casual Workers  Independent Contractors

 2/3 rd of all compensation cases are voluntarily paid by employer/insurance carrier  If claim is disputed, a claim can be filed with the WCA who then assigns to a mediator  Can then be appealed to Court of Appeals and then the Supreme Court

 Misrepresenting injury or lying about injury to obtain compensation  Prison 1-5 years  $15,000-$50,000 fine  Repayment of benefits fraudulently obtained