SENATE BILL NO. 1080

A bill to amend 1969 PA 317, entitled

"Worker's disability compensation act of 1969,"

by amending sections 321, 331, 335, 345, and 356 (MCL 418.321, 418.331, 418.335, 418.345, and 418.356), sections 321 and 335 as amended by 1994 PA 271, section 331 as amended by 2011 PA 266, section 345 as amended by 1996 PA 107, and section 356 as amended by 2014 PA 231.

the people of the state of michigan enact:

Sec. 321. If death results from the personal injury of an employee, the employer shall pay, or cause to be paid, subject to section 375, in 1 of the methods provided in this section, to the dependents of the employee who were wholly dependent upon on the employee's earnings for support at the time of the injury, a weekly payment equal to 80% of the employee's after-tax average weekly wage, subject to the maximum and minimum rates of compensation under this act, for a period of 500 weeks from the date of death. If at the expiration of the 500-week period any such wholly or partially dependent person individual is less than 21 years of age, a worker's compensation magistrate may order the employer to continue to pay the weekly compensation or some portion thereof of the weekly compensation until the wholly or partially dependent person individual reaches the age of 21. If the employee leaves dependents only partially dependent upon his or her on the employee's earnings for support at the time of injury, the weekly compensation to be paid shall be must equal to the same proportion of the weekly payments for the benefit of persons wholly dependent individuals as 80% of the amount contributed by the employee to the partial dependents the employee's income bears to the annual earnings combined income of the deceased employee and the partially dependent individual at the time of injury, except as otherwise provided in section 356.

Sec. 331. (1) Except as otherwise provided in section 335(1), if death results from the personal injury of an employee, the employee's spouse who is living with the employee at the time of death is conclusively presumed to be wholly dependent on the employee's earnings for support for a period of 208 weeks after the date of death. After the 208-week period, continuing dependency, in whole or in part, is determined in accordance with the facts at the time of the injury. If the spouse is determined to be partially dependent on the employee's earnings for support at the time of the injury, the weekly compensation rate must be calculated in accordance with section 321. Except as otherwise provided in section 335(1), if the spouse establishes an entitlement to ongoing weekly compensation payments, payments must be made for a period of 500 weeks from the date of death.

(2) Except If death results from the personal injury of an employee, except as otherwise provided in this section, a child under the age of 16 of the employee who is less than 18 years of age, or 16 18 years of age or over more if the child is physically or mentally incapacitated from earning, is conclusively presumed to be wholly dependent for support upon on the parent with whom he or she is living at the time of the death of that parent. In the event of the death of an employee who has at the time of death a living child by a former spouse or a child who has been deserted by the deceased employee under the age of 16 years, or over if physically or mentally incapacitated from earning, that child shall be conclusively presumed to be wholly dependent for support upon the deceased employee, even though not living with the deceased employee at the time of death.employee.

(3) The death benefit shall must be divided among all persons individuals who are wholly dependent upon on the deceased employee, in equal shares. The total sum due a surviving spouse and his or her the deceased employee's own children shall must be paid directly to the surviving spouse for his or her own the surviving spouse's use, and for the use and benefit of his or her own the deceased employee's own children. If during the time compensation payments continue, a worker's compensation magistrate finds that the surviving spouse is not properly caring for those the deceased employee's own children, the worker's compensation magistrate shall order the shares of the children to be thereafter paid to their the children's guardian or legal representative for their the children's use and benefit, instead of to their father or mother. the surviving spouse. In all cases the sums due to the children by the former spouse of the deceased employee shall must be paid to their the children's guardians or legal representatives for the use and benefit of those the children. In all other cases questions of dependency, in whole or in part, shall must be determined in accordance with the facts at the time of the injury. If a deceased employee leaves a person an individual wholly dependent upon him or her on the deceased employee for support, that person shall be individual is entitled to the whole death benefit and persons partially dependent individuals, if any, shall receive no part thereof, of the death benefit, while the person wholly dependent individual is living. All persons individuals wholly dependent upon on a deceased employee, whether by conclusive presumption or as a matter of fact, shall be are entitled to share equally in the death benefit in accordance with the provisions of this section. If there is no one wholly dependent individual or if the death of all persons wholly dependent individuals occurs before all compensation is paid, and there is only 1 person partially dependent individual, that person individual is entitled to compensation according to the extent of his or her the individual's dependency; and if there is more than 1 person partially dependent individual, the death benefit shall must be divided among them the partially dependent individuals according to the relative extent of their the partially dependent individuals' dependency. A person shall not be An individual is not considered a dependent unless he or she the individual is a member of the family of the deceased employee, or unless such person the individual bears to the deceased employee the relation of widower or widow, lineal descendant, ancestor, or brother or sister.sibling.

Sec. 335. (1) Upon the remarriage of If a dependent wife spouse who is receiving compensation under section 321 remarries, such compensation payments shall cease upon the payment to her of the balance of the compensation to which she the spouse that the spouse would otherwise have been entitled, but not to exceed the sum of $500.00. , and further Any remaining compensation , if any, shall be is payable to the person individual either wholly or partially dependent upon on the deceased employee for support at his the time of the death as provided in section 331(b). 331. A worker's compensation magistrate shall determine the amount of compensation or portion thereof of the compensation that shall be is payable weekly to such the wholly or partially dependent person individual for the remaining weeks of compensation. Where, If, at the expiration of the 500-week period, any such a wholly or partially dependent person individual is less than 18 years of age, a worker's compensation magistrate may order the employer to continue to pay the weekly compensation, or some portion thereof, of the weekly compensation, until such the wholly or partially dependent person individual reaches the age of 18. The payment of compensation to any dependent child shall cease when the child reaches the age of 18 years, if at the age of 18 years he or she is neither physically nor mentally incapacitated from earning, or when the child reaches the age of 16 years and thereafter is self-supporting for 6 months. If the child ceases to be self-supporting thereafter, the dependency shall be reinstated. Such Any remaining compensation , if any, shall be is payable to the person either individual who is wholly or partially dependent upon on the deceased employee for support at the time of the employee's death, as provided in the case of the remarriage of a dependent wife.not to exceed $500.00.

(2) This section shall apply applies to all persons individuals who are entitled to receive compensation or are receiving compensation under this act on July 30, 1985 2025 and who have not attained the age of 18 years on July 30, 1985.2025.

Sec. 345. If death results from the personal injury of an employee, the employer shall pay, or cause to be paid, the reasonable expense of the employee's last sickness, funeral, and burial. The cost expense of the funeral and burial shall must not exceed $6,000.00 $12,000.00 or the actual cost, expense, whichever is less. Any person who that performed such a service or incurred such liability under this section may file an application with the bureau. agency. A worker's compensation magistrate may order the employer to pay such the sums for the service or liability, or both.

Sec. 356. (1) An injured employee who, at the time of the personal injury, is entitled to a rate of compensation less than 50% of the then applicable state average weekly wage as determined for the year in which the injury occurred pursuant to under section 355, may be entitled to an increase in benefits after 2 years of continuous disability. After 2 years of continuous disability, the employee may petition for a hearing at which the employee may present evidence that, by virtue of the employee's age, education, training, experience, or other documented evidence which that would fairly reflect the employee's earning capacity, the employee's earnings would have been expected to increase. Upon presentation of this evidence, a worker's compensation magistrate may order an adjustment of the compensation rate up to 50% of the state average weekly wage for the year in which the employee's injury occurred. The adjustment of compensation, if ordered, shall be is effective as of the date of the employee's petition for the hearing. The carrier shall pay the adjustments provided in under this subsection shall be paid by the carrier on a weekly basis. However, the carrier, the self-insurers' security fund, and the private employer group self-insurers security fund shall be are entitled to reimbursement for these payments from the second injury fund created in section 501. There shall be An employee may receive only 1 adjustment made for an employee under this subsection.

(2) The minimum weekly benefit for death under section 321 shall be for a wholly dependent individual is 50% of the state average weekly wage as determined under section 355.

(3) The minimum weekly benefit for 1 or more losses stated in section 361(2) and (3) shall be is 25% of the state average weekly wage as determined under section 355.

(4) There is no minimum weekly benefit for total disability under section 351 or for a partially dependent individual under section 321.

(5) This section does not apply to an employee entitled to benefits under section 361(1).