Michigan, like many states, utilizes a workers’ compensation system to provide for medical care and lost wages for employees who are injured on the job.  Under the workers’ compensation system, most employers are required to obtain workers’ compensation insurance.  In the event that an employee is injured, or becomes ill while performing work-related duties, the worker is entitled to have their medical bills and lost wages paid, even if the employee’s own negligence was the cause of the injury, or illness.

The disability benefits provided under the act are the exclusive remedy for work-related injuries. The only exception to this exclusive remedy is an intentional tort. An intentional tort exists only when an employee is injured, as a result of a deliberate act of the employer and the employer specifically intended an injury. An employer is deemed to have intended to injure if the employer had actual knowledge that an injury was certain to occur and willfully disregarded that knowledge. The issue of whether an act was an intentional tort is a question of law for the court.

Obviously, it is extremely rare for an employer to intentionally injure an employee.  So, in the overwhelming majority of cases, if an employee is injured, or becomes ill at work, they are strictly forbidden from suing their employer.  The benefit to employees is the certainty that if they are injured on the job, their medical bills and lost wages will be taken care of.  The benefit to the employer is that if an employee is injured on the job, the employer will not be sued and will have insurance in place to cover the employee’s benefits.

To keep everyone honest, there are penalties in place for employers who do not obtain any, or enough workers’ compensation insurance.  There are severe penalties for the failure of an employer to provide workers’ compensation coverage. First, employers who fail to obtain insurance lose their immunity from lawsuits for work-related injuries. Second, the Workers’ Compensation Agency can use legal process to prohibit the employer from employing anyone until the employer obtains the proper insurance.  Third, the employer may be subject to a fine of $1,000, or imprisonment for no less than 30 days and no more than 6 months, or both. Each day for which the employer is uninsured is considered a separate offense.  

— Kassem Dakhlallah is a partner with Jaafar & Mahdi Law Group, P.C.  His practice focuses on complex litigation including class actions, representative actions, commercial litigation, civil forfeiture and personal injury. He can be reached at 313. 846.6400 and kassem@jaafarandmahdi.com.