Michigan Senate Bill SB1080

Michigan 2023-2024 Regular Session

• Introduced: 11/7/24
• Refer: 11/7/24
• Report Pass: 12/18/24
• Refer: 12/18/24

Caption

Worker's compensation: benefits; compensation for death resulting from personal injury; modify. Amends secs. 321, 331, 335, 345 & 356 of 1969 PA 317 (MCL 418.321 et seq.).

Impact

This bill aims to ensure that dependents of deceased employees receive support that reflects a significant portion of the deceased's income. The weekly benefit calculations also take into account the state average weekly wage, ensuring that dependents are not left destitute. Additionally, provisions are made for funeral and burial expenses not to exceed $12,000. This amendment could significantly ease the financial burden on families who lose their primary income earners due to workplace injuries.

Summary

Senate Bill 1080 is an amendment to the Worker's Disability Compensation Act of 1969, focusing on updating the provisions related to death benefits for employees who die as a result of personal injuries sustained while on the job. The bill stipulates that if an employee dies due to personal injury, their dependents are entitled to receive weekly compensation equal to 80% of the employee's after-tax average weekly wage for a period of 500 weeks. In cases where dependents are under the age of 21 at the end of this period, a worker's compensation magistrate may extend these payments until they reach 21.

Contention

Notable points of contention surrounding SB 1080 involve the adequacy of the compensation rates and the potential for increased insurance costs for employers. Critics may advocate for higher compensation rates or broader eligibility criteria for dependents, while proponents argue that the current structure already provides substantial coverage. Moreover, there may be discussions about the implications of increasing the burden on employers through higher insurance premiums, potentially stifling job growth or forcing businesses to cut costs elsewhere.