Workers’ Compensation Changes Headed To Governor

A bill making major changes to the state’s worker’s compensation system is headed to the governor after the House concurred Tuesday with changes the Senate made to the legislation last week.

The state’s main business groups supported HB 5002, but unions have strongly opposed it.

The House approved the bill 60-47, and Governor Rick Snyder’s signature is expected.

“It always has to go through the final review, but he definitely agreed with the intent of updating and modernizing the act and making sure we were cost competitive,” press secretary Sara Wurfel said.

Republicans say the changes codify existing case law, which sets workers compensation benefits at 80 percent of an injured workers after-tax wages. Their future wage earning capacity would be determined by reasonably available, suitable jobs, but not whether wages from those jobs are actually earned or not.

Democrats call this provision “phantom wages,” but proponents say it gets at the heart of the reason behind the bill – providing an incentive for people who can find work to do so, instead of milking the workers’ compensation system.

“Our workers’ compensation system needs to be clear so workers and employers can take advantage of it without confusion over coverage,” Rep. Bradford Jacobsen (R-Oxford), the bill sponsor, said in a statement. “Michigan workers hurt on the job should not have to go to court to resolve their claims, and the changes in this bill should cut down on that practice.”

Mr. Jacobsen said the changes will not affect those receiving benefits now, nor those with pending claims.

Last week, the Senate approved an exemption for police officers and firefighters from the bill, and then rejected attempts by Democrats to extend the exemption to corrections officers, teachers, veterans, hospital workers and skilled trade workers.

Rep. Jim Townsend (D-Royal Oak) offered a similar amendment, but it was also rejected along with a number of other Democratic amendments.

“If the concept of virtual wages is so flawed … why retain this concept for anyone else?” he said.