Michigan legislation enhances workers compensation for injured employees and dependents

Michigan Senate Bill 75, introduced on February 11, 2025, aims to amend existing worker's compensation laws, specifically addressing benefits for injured employees and funeral expenses for deceased workers. The bill proposes significant changes to the compensation structure, particularly for those who have suffered personal injuries and are receiving less than 50% of the state average weekly wage.

One of the key provisions of the bill is the increase in the maximum funeral and burial expense that employers are required to cover, raising the limit from $6,000 to $12,000. This change seeks to alleviate the financial burden on families of deceased employees, ensuring they receive adequate support during a difficult time.

Additionally, the bill introduces a mechanism for injured employees who have been continuously disabled for two years to petition for an increase in their compensation rate. If the employee can demonstrate that their earning capacity would have likely increased due to factors such as age, education, or experience, a worker's compensation magistrate may adjust their compensation rate to a maximum of 50% of the state average weekly wage. This provision aims to provide fairer compensation for long-term injured workers, reflecting their potential earning capacity.

The bill has sparked discussions among lawmakers and stakeholders, with some expressing concerns about the financial implications for employers and the worker's compensation system. Critics argue that increasing the funeral expense cap and adjusting compensation rates could lead to higher premiums for businesses. Supporters, however, emphasize the need for better support for injured workers and their families, highlighting the importance of addressing the rising costs of funerals and the financial challenges faced by long-term disabled employees.

As the bill progresses through the legislative process, its implications could have significant social and economic impacts, particularly for workers and families affected by workplace injuries. If passed, Michigan Senate Bill 75 could reshape the landscape of worker's compensation in the state, providing enhanced support for those in need while balancing the concerns of employers. The next steps will involve further debates and potential amendments as lawmakers consider the bill's provisions and their broader effects on the community.