Workers’ Comp vs. Third-Party Claims in Michigan

Sustaining an injury while performing job duties can throw your financial stability and medical care into uncertainty. In Michigan, injured employees often have rights under both the Workers’ Disability Compensation Act and general personal injury tort laws.

What is Workers’ Compensation?

Michigan Workers’ Compensation is a no-fault statutory benefit system. If you are injured on the job, you receive guaranteed medical coverage and wage loss replacement regardless of who was at fault for the accident — even if your own mistake caused the injury.

However, under Workers’ Comp, you cannot sue your employer for pain and suffering damages.

Key Benefits Provided by Workers’ Comp

• 100% Medical Expenses: All reasonable and necessary medical treatments related to the work injury.
• Wage Loss Benefits: 80% of your weekly after-tax average wage while unable to work.
• Vocational Rehabilitation: Retraining or job placement assistance if you cannot return to your previous occupation.

When Can You File a Third-Party Lawsuit?

If your workplace injury was caused by a negligent third party (someone other than your employer or co-worker), you can file a separate Third-Party Personal Injury Lawsuit. Examples include:

• A motor vehicle crash caused by a negligent driver while running work errands.
• Defective machinery or equipment designed or manufactured by an outside vendor.
• Toxic chemical spills or hazardous conditions caused by a subcontractor on a job site.

A third-party lawsuit allows you to seek additional damages not provided by Workers’ Comp, including full un-capped pain and suffering and emotional distress damages. Explore your rights further on our Workers’ Compensation Practice Area Page.