Workers' Comp Settlements in Michigan

Yes. Liability for a claim can be redeemed (settled) in whole or in part by a lump-sum payment, subject to approval by a workers' compensation magistrate, after 6 months have passed since the injury. A magistrate may also order a lump sum at any time if special circumstances require it. Filing a proposed redemption agreement is not an admission of liability. The insurance carrier must give the employer written notice at least 10 business days before the hearing on a redemption agreement.

Weekly benefits for total disability are paid for the duration of the disability, with no fixed week limit. Certain severe injuries listed in the law create a conclusive presumption of total and permanent disability for up to 800 weeks from the date of injury; after that, permanent and total disability is decided on the facts at that time. Specific losses of body parts are compensated for a set number of weeks from a schedule (for example, 215 weeks for a hand and 269 weeks for an arm).

Attorney fees in Michigan workers' compensation cases must be approved by a workers' compensation magistrate; disputed fees can be taken to a hearing and reviewed. The agency director may set maximum attorney fees by rule, and the maximums cannot be based on a weekly benefit (after coordination) higher than two-thirds of the state average weekly wage at the time of injury. For claims filed after March 31, 1986, fees follow a contingency fee schedule; if that schedule produces less than $500, the claimant may agree in writing to pay up to $500 total. Fees above the rule-based amount require a special order of the director.