Bill > HB5188

This bill modifies the Michigan Workers' Disability Compensation Act by updating provisions related to redemption agreements, which are settlements that allow employers to pay a lump sum to resolve a worker's compensation claim. The bill clarifies that redemption agreements can be proposed not less than 6 months after a personal injury, and a worker's compensation magistrate can approve these agreements if special circumstances are found. The bill requires carriers to notify employers in writing about proposed redemption agreements at least 10 business days before a hearing, including details like the agreement amount, conference procedures, and hearing information. Each party to a redemption agreement must now pay a $100 fee, which will be collected and placed in a workers' compensation administrative revolving fund. This fund can only be used for specific purposes such as education and training, case management, and hearings. The bill also makes some minor language modifications, such as changing "worker's compensation appellate commission" to "workers' disability compensation appeals commission" and updating grammatical structures like replacing "shall" with "must" throughout the text. These changes aim to provide more clarity and standardization in the workers' compensation claims process.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5188