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MI HB5187

MI HB5187
Worker's compensation: benefits; an employer's or carrier's ability to recoup an overpayment of benefits; provide conditions for. Amends sec. 833 of 1969 PA 317 (MCL 418.833).


summary

Introduced
10/30/2025
In Committee
10/30/2025
Crossed Over
Passed
Dead

Introduced Session

103rd Legislature

Bill Summary

A bill to amend 1969 PA 317, entitled"Worker's disability compensation act of 1969,"by amending section 833 (MCL 418.833).

AI Summary

This bill amends the Workers' Disability Compensation Act to modify how worker's compensation benefits overpayments are handled. The bill establishes new rules limiting the time frame for filing compensation claims and recovering overpaid benefits to one year prior to the application date. It introduces specific conditions under which an employer or carrier (including insurance funds) can recoup overpaid benefits from an injured employee. Notably, an employee cannot be forced to reimburse overpaid benefits unless they have concealed post-injury earnings, the overpayment resulted from a mathematical or clerical error, or there was a coordination error. If an overpayment occurs due to an error, the employer can only reduce the employee's weekly benefit amount by up to 50%. The bill also provides protections for employees, such as preventing reimbursement if the employer unreasonably changes its position about the employee's work-related condition, and allowing a worker's compensation magistrate to waive recoupment if it would cause undue harm to the employee. The legislation aims to balance the interests of employers and employees by establishing clear guidelines for handling benefit overpayments in workers' compensation cases.

Committee Categories

Government Affairs

Sponsors (28)

Last Action

Bill Electronically Reproduced 10/30/2025 (on 11/04/2025)

Bill Topics

Labor and Employment
  • ‐ Employee Benefits

bill text


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