HOUSE BILL NO. 5187

A bill to amend 1969 PA 317, entitled

"Worker's disability compensation act of 1969,"

by amending section 833 (MCL 418.833).

the people of the state of michigan enact:

Sec. 833. (1) If payment of compensation is made, other than medical expenses, and an application for further compensation is later filed with the bureau, no agency, compensation shall must not be ordered for any period which that is more than 1 year prior to before the date of filing of such the application.

(2) When an employer or carrier takes action to recover overpayment of benefits, no recoupment Recoupment of money shall be an overpayment of benefits is not allowed for a period which that is more than 1 year prior to before the date of taking such action.that an employer or carrier files an application with the agency to recoup the overpayment of benefits.

(3) If an employer or carrier voluntarily pays benefits, or pays benefits under a voluntary pay agreement to an injured employee, the injured employee must not be ordered to reimburse an overpayment of benefits unless the employer or carrier establishes 1 or more of the following:

(a) The employee concealed postinjury earnings.

(b) The employer or carrier overpaid benefits as a result of a mathematical, technological, or clerical error.

(c) The employer or carrier overpaid benefits as a result of a coordination error as described in section 354(9).

(4) If an employer or carrier overpays benefits to an injured employee as a result of a mathematical, technological, or clerical error, the employer or carrier may recoup the overpayment of benefits by reducing the employee's weekly benefit amount, but shall not reduce the weekly benefit amount by more than 50%.

(5) A worker's compensation magistrate shall not order an injured employee to reimburse an overpayment of benefits to the employer or carrier if the employer or carrier unreasonably changes its position regarding whether the employee has a work-related condition or disability under this act.

(6) A worker's compensation magistrate may waive an employer's or carrier's recoupment of an overpayment of benefits if the injured employee proves that the recoupment would cause the employee undue harm or would not serve the purposes of this act.

(7) As used in this section:

(a) "Carrier" includes the PEGSISF, the Christopher R. Slezak first responder presumed coverage fund, or the self-insurers' security fund.

(b) "Voluntary pay agreement" means a written agreement between the employee and employer for the employer to provide benefits under this act.