Changes to Michigan’s Workers Compensation System by Sandy Flippo, SPHR 
As a part of an overhaul of state systems in Michigan, changes have been made to Workers Compensation processes and the Workers Disability Compensation Act, effective January 1, 2012 which will affect injured worker’s eligibility and compensation. House Bill 5002 has moved the Workers’ Compensation Agency into the Department of Licensing and Regulatory Affairs. Among other changes in magistrates, appeal commissions and adjudicative activities, a new commission, the Michigan Compensation Appellate Commission, will now decide appeals of the Workers’ Compensation Magistrate and decisions made by Unemployment Compensation Referees. Common definitions of terms affecting injured workers and claims have been revised. To qualify for worker’s compensation, a partially disabled worker must show a good-faith effort to obtain a job within his wage earning capacity. If the worker cannot show that there was a good-faith effort, his/her worker’s compensation is limited to 80% of the difference between the worker’s weekly wage before the injury/illness and the worker’s wage earning capacity after the injury/illness. Other changes include: • Worker’s compensation payments now include consideration of wages that not only are earned, but also that could be earned, whether or not it is actually earned. • If the injured employee has reached retirement age but has not yet retired, benefits will be reduced as if the employee was already retired and receiving retirement/pension payments. • Injured employees must treat with the employer’s physician for the first 28 days after the injury/illness, rather than 10 days. • A disability based on a mental condition must be directly derived from an actual work-related event. Michigan House Bill 5002 can be reviewed at www.michigan.gov/wca.
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