Bill > HB5541

This bill modifies the Worker's Disability Compensation Act of 1969 to change how an injured employee's average weekly wage is calculated, which is a key factor in determining their benefits. The bill clarifies that the average weekly wage includes overtime, premium pay, and cost of living adjustments but excludes fringe benefits or other payments that continue during a disability, as well as any discretionary bonuses, which are defined as payments not fundamental to basic wages. It also introduces a new provision, effective until December 31, 2028, stating that for employers with 50 or fewer employees, overtime compensation will be calculated using the employee's regular rate of pay for overtime hours, not 1.5 times the regular rate. Furthermore, insurers providing worker's compensation to these smaller employers must adjust premium rates to reflect this new calculation method, applying a lower rate if applicable. The bill also refines how the average weekly wage is determined if an employee works less than 39 weeks, or if their first work week is incomplete, and ensures the final average weekly wage is rounded to the nearest dollar.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2026-HB-5541