WORKER’S COMPENSATION; MODIFY S.B. 1079 (S-1) & 1080:
SUMMARY OF BILL
REPORTED FROM COMMITTEE
Senate Bill 1079 (Substitute S-1 as reported)
Senate Bill 1080 (as reported without amendment)
Sponsor: Senator John Cherry
Senator Mary Cavanaugh
Committee: Labor
CONTENT
Senate Bill 1079 (S-1) would amend Chapter 3 (Compensation) and Chapter 4 (Occupational
Diseases and Disablements) of the Worker’s Disability Compensation Act to do the following:
-- Modify standards used to determine entitlement for disability compensation for a personal
injury.
-- Increase the maximum weekly rate for disability compensation from 90% to 100% of the
State average weekly wage.
-- Specify that if an employee's health insurance, dental insurance, or both did not continue
during a disability, the value of the insurance would have to be included in the calculation
of the employee's average weekly wage, even if the wage exceeded 2/3 of the State
average weekly wage at the time of injury.
-- Add serious and permanent scarring or disfigurement to the face or head to the schedule
of personal injuries that would qualify an individual for disability compensation and
prescribe a period of 52 weeks of compensation.
-- Specify that tables published by the Director of the Department of Labor and Economic
Opportunity (LEO) for the year in which an employee's injury occurred would have to be
used to calculate the injured employee's after-tax average weekly wage, wage loss, or
amount of benefits to be coordinated under the Act.
-- Prohibit an entity from discriminating against an employee for filing a complaint under the
Act.
-- Delete requirements for establishing an initial showing of disability.
-- Modify definitions related to disability compensation for personal injury and occupational
diseases and disablements.
Senate Bill 1080 would amend Chapter 3 (Compensation) of the Worker’s Disability
Compensation Act to do the following:
-- Conclusively presume the spouse of an employee who died from a personal injury to be
wholly dependent on that employee’s earnings for 208 weeks after death.
-- Require a spouse presumed to be wholly dependent on a deceased employee’s earnings
to be paid for 500 weeks after death if the spouse established an entitlement to ongoing
weekly compensation payments and did not remarry.
-- Increase, from 16 to 18 years of age, the age under which the child of an employee who
died from a personal injury would be conclusively presumed to be wholly dependent on
for support from the deceased employee.
-- Increase, from $6,000 to $12,000, the maximum funeral and burial expense that an
employer must pay in the event of an employee death from a personal injury.
-- Require the minimum weekly benefit upon an employee's death to be 50% of the State
average weekly wage for a wholly dependent individual, instead of an individual.
-- Specify that partially dependent individuals would not be entitled to a minimum weekly
benefit.
Page 1 of 2 sb1079/1080/2324
-- Delete the requirement that benefits cease for a 16- or 17-year-old self- supporting
dependent child of a deceased employee.
MCL 418.301 et al. (S.B. 1079)
418.321 et al. (S.B. 1080)
BRIEF RATIONALE
According to testimony, Public Act 266 of 2011 reduced the compensation received by injured
workers in the State, and only injured workers in Arkansas and Texas receive less
compensation than injured workers in Michigan. Some people believe injured workers should
be compensated more for their workplace injuries, so the bill has been suggested.
Legislative Analyst: Alex Krabill
FISCAL IMPACT
Senate Bill 1079 (S-1)
The bill would have an indeterminate fiscal impact on the State and on local units of
government. Increasing the weekly rate for disability compensation, excluding employee’s
health insurance and/or dental insurance from the 2/3 of the State average weekly wage cap,
and removing of requirements for establishing an initial showing of disability could increase
the number of benefit recipients and the average cost per case. It is unknown how many
workers' compensation recipients could be affected by the bill, but it is likely to increase the
overall average cost per case. The number of claims for lost time over seven days in 2022
totaled 21,563 and the total payouts for that year was $834.2 million. Total payouts have
declined around 23% since 2014 while the number of claims have remained roughly the same.
It is unknown how much the overall payouts would increase and if or by how much that would
increase the overall premiums on employers.
The bill would have a one-time fiscal impact on LEO. The most significant part of the one-time
impact would be updating forms and procedures regarding the changes in the bill. The
Workers’ Disability Compensation Agency is mostly funded with restricted dollars, which is
funded by assessments on the insurance policies and through other fees. The bill would have
an indeterminate negative fiscal impact on the State through increased workers’
compensation payments. In Fiscal Year (FY) 2023-24, the State of Michigan paid out $17.6
million in workers’ compensation. Total payments have been declining over the past three
years, from a total of $20.1 million in FY 2021-22 and $18.3 million in FY 2022-23. It is
currently unknown if the increased payments would be significant enough to reverse this trend
and to what extent. The bill would have an indeterminate negative fiscal impact on local
governments. This negative fiscal impact is in the form of increased payments for workers’
compensation premiums for local government units.
Senate Bill 1080
The bill would have an indeterminate fiscal impact on LEO and no fiscal impact on local units
of government. The bill could increase the number of payouts to survivors of workers who
died as a result of personal injury of an employee. It is unknown how many survivors would
be affected by the bill, but there could be an increase in payouts. This could also increase the
assessments on the various funds that support LEO's administration of the Act. The overall
impact would likely be minor.
Date Completed: 12-16-24 Fiscal Analyst: Cory Savino, PhD
floor\sb1079 Bill Analysis @ sfa.senate.michigan.gov/
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not
constitute an official statement of legislative intent.


Statutes affected:
Senate Introduced Bill: 418.301