Workers’ compensation insurance is an important way to ensure your small business can protect employees in the event of a work-related injury or illness. It also prevents liabilities to your business by providing coverage to your workers.
Michigan workers’ compensation will pay for any reasonable and necessary medical care if an employee has experienced a work-related injury or illness.
Read on to learn what Michigan workers’ compensation is, the benefits employees get from coverage, and how it can protect you and your small business in the event of a work-related accident.
According to the Workers’ Disability Compensation Act, you can exclude employees from coverage if your business has one or more workers, and all workers are the spouse, child, or parent of the sole proprietor.
You can exclude employees from coverage if they’re all partners.
You can exclude employees from coverage if they’re all corporate officers and own 10% or more stock in the corporation.
You can exclude employees from coverage if they’re all members or managers, and own at least 10% interest in the business.
There are various benefits your employees can receive if they experience a work-related illness or injury through workers’ comp coverage. These benefits include:
Disability wage benefits are supplemented up to 50 weeks. This supplement will provide two-thirds of the employee’s regular wage at the time of the work-related injury or illness.
Wage supplements may continue longer than the allotted 50-week period in special circumstances with approval from the State Employer.
If your employee can’t return to work after 50 weeks, the wage supplement will end.
The individual may be placed on a medical leave of absence or separated from employment depending on their medical-leave rights under civil service rules and regulations, or based on the collective bargaining agreement.
Sedgwick, which is Michigan’s Workers’ Compensation Third Party Administrator, can schedule an independent medical examination if they have any questions regarding the medical information provided by your employee. The individual must participate in this examination, otherwise, their benefits may be suspended.
Your employee is only eligible to collect LTD benefits if Sedgwick denies or disputes the workers’ comp claim.
Remember, every situation is different. Michigan workers’ compensation laws are subject to change, so be sure to do your research and speak with a trusted advisor.
Please note that this content is intended for educational purposes only. As laws change regularly, refer to your state legislation and/or an advisor for specific legal counsel. If you’re a small business owner, learn more about the basics of workers’ comp or check your current rate in 3 minutes.