Michigan considers legislation to redefine ‘disability’

A Michigan lawmaker proposed sweeping workers compensation reforms that would increase the cap on benefits, revise the definition of “disability” and eliminate the distinction between total disability and partial disability.

The Michigan Chamber of Commerce said the bill, which Democrats could try to send to the governor’s desk before they lose control of the House of Representatives at the end of the year, would upset the balance of workers compensation laws.

Michigan law currently defines disability as a limitation on an employee’s wage-earning capacity resulting from an injury or illness and declares that a limitation on wage earning capacity occurs only if a person is unable to perform all jobs paying the maximum wages in work suitable to the person’s qualifications and training.

SB 1079 would declare that a limitation on wage-earning capacity occurs if an injured worker is unable “to perform or obtain one or more jobs in work that the employee performed before or at the time of the personal injury” and that is suitable to their training and experience.

The bill would also repeal two sentences in the definition of disability that declare a disability is total if the employee is unable to work in any capacity and partial if the person has some ability to work but is earning less than before the injury.

The bill would redefine wage loss to mean a loss of earnings “connected to a disability” rather than loss of earnings “due to a disability.” The bill includes a provision that would make the new disability and wage-loss definitions retroactive to injuries and illnesses occurring on or after June 30, 1985.