Worker's compensation: benefits; deadline to pay compensation benefits; modify to 14 days after compensation becomes due and payable, and modify daily charge and interest amounts for noncompliance. Amends sec. 801 of 1969 PA 317 (MCL 418.801).
HB 5184 would amend Michigan’s Workers’ Disability Compensation Act to change the timing and penalties for late payment of workers’ compensation benefits. The bill shortens the deadline for paying weekly compensation benefits, accrued benefits, and compensation owed under a final redemption order from 30 days to 14 days after the payment becomes due, so long as there is no ongoing bona fide dispute. It also increases the daily late-payment charge from $50 to $100 and raises the maximum total penalty from $1,500 to $25,000.
The bill makes similar changes for unpaid medical bills and travel allowances. If those amounts are not paid within 30 days after the carrier receives notice of nonpayment by certified mail and there is no bona fide dispute, the daily charge would increase from $50 to $100, with the same higher $25,000 cap. The bill also clarifies that daily charges paid for late weekly compensation do not count as elements of loss for rate-making purposes, and it preserves the rule that an employer who fails to notify its carrier after learning of a disability or death is subject to the same penalty.
HB 5184 also updates the interest provision for compensation awarded by a magistrate, arbitrator, board, appellate commission, or court. Under the bill, interest would be paid at the same rate used for civil money judgments under Michigan law, described in the bill as 10% per annum from the date each payment was due until paid. In addition, the bill requires the director of the workers’ compensation agency to coordinate with the Department of Technology, Management, and Budget on developing comprehensive data and to report recommendations to the Legislature on using advanced analytics to detect and prevent fraud, waste, and abuse in the workers’ compensation system.
The bill’s impact would be to strengthen enforcement of timely payment obligations in the workers’ compensation system and increase financial consequences for carriers and employers that delay payment without a bona fide dispute. It would affect employers, insurance carriers, injured workers, and the workers’ compensation agency by creating faster deadlines, larger penalties, and a reporting requirement tied to fraud detection and benefit reductions based on wage-earning capacity determinations.
No committee transcripts or recorded votes were provided, so there is no direct evidence of legislative debate or formal support/opposition in the materials supplied. Based on the bill text alone, the measure appears aimed at improving prompt payment and accountability, while the main likely point of contention would be the substantially higher penalties and shorter payment deadlines for employers and carriers versus the stronger protections and faster relief for injured workers.
HB 5184 would amend section 801 of the Workers’ Disability Compensation Act of 1969, changing statutory deadlines, penalty amounts, and interest rules for unpaid workers’ compensation obligations. It would reduce the time to pay weekly compensation from 30 days to 14 days, increase daily late-payment charges and caps, and require interest on awarded compensation to be paid using the civil judgment interest rate referenced in Michigan law. It would also add a legislative reporting requirement on advanced analytics for fraud detection in the workers’ compensation system.
No committee testimony or vote history was provided, so the record does not show explicit support or opposition. The bill’s structure suggests a pro-worker enforcement approach focused on faster payment and stronger penalties, which would likely be viewed favorably by injured workers and advocates for prompt benefits. Employers and insurance carriers would likely be more cautious or opposed because the bill increases exposure for late payments and tightens compliance timelines.
The main likely point of contention is the increase in penalties and the shorter 14-day deadline for paying compensation benefits, which could be seen by employers and carriers as too aggressive or costly. Another possible issue is the jump in the maximum daily penalty cap from $1,500 to $25,000, which significantly raises financial risk for noncompliance. Supporters would likely emphasize that the bill protects injured workers from delayed benefits and medical reimbursements and improves enforcement against bad-faith delay.