Michigan Office of Administrative Hearings and Rules  
611 W. Ottawa Street  
Lansing, MI 48909  
Phone: 517-335-8658 Fax: 517-335-9512  
AGENCY REPORT TO THE  
JOINT COMMITEE ON ADMNINISTRATIVE RULES (JCAR)  
1. Agency Information  
Agency name:  
Labor and Economic Opportunity  
Division/Bureau/Office:  
Workers' Compensation Agency  
Name of person completing this form:  
Dave Campbell  
Phone number of person completing this form:  
517-284-8891  
E-mail of person completing this form:  
campbelld5@michigan.gov  
Name of Department Regulatory Affairs Officer reviewing this form:  
Thomas Shaver  
2. Rule Set Information  
MOAHR assigned rule set number:  
2020-31 LE  
Title of proposed rule set:  
Workers’ Disability Compensation General Rules  
3. Purpose for the proposed rules and background:  
The general purpose of these rules is to provide consumers with procedures and guidance for  
addressing workers’ compensation claims, contested hearings, and workers’ compensation insurance  
policies, in order to carry out the provisions of the Worker’s Disability Compensation Act. The entire  
rule set will be updated for accuracy and procedural consistency. The rules will be revised to make  
necessary updates in order to facilitate the acceptance of electronic claims, insurance filings, and  
other reporting data, including use of secure and valid electronic signatures. Rules regulating  
attorney fees will be updated to reflect statutory changes in rate calculation and in response to case  
law. In addition, new rules will be added to this rule set to establish procedures for submitting and  
processing requests for review of redemption orders; provide procedures to implement requests under  
MCL 418.161(n); address issues raised by case law regarding overpayment reimbursement; require  
increased use of forms advising injured workers of rights and procedures. Rules regarding vocational  
rehabilitation will be updated to facilitate/provide for job search as required by statutory amendments  
and caselaw. Overall, language will be updated regarding the service of papers, vocational  
rehabilitation services, as well as general technical updates throughout.  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 2  
4. Summary of proposed rules:  
The general purpose of these rules is to provide consumers with procedures and guidance for  
addressing workers’ compensation claims, contested hearings, and workers’ compensation insurance  
policies, in order to carry out the provisions of the Worker’s Disability Compensation Act. The entire  
rule set will be updated for accuracy and procedural consistency. The rules will be revised to make  
necessary updates in order to facilitate the acceptance of electronic claims, insurance filings, and  
other reporting data, including use of secure and valid electronic signatures. Rules regulating  
attorney fees will be updated to reflect statutory changes in rate calculation and in response to case  
law. In addition, new rules will be added to this rule set to establish procedures for submitting and  
processing requests for review of redemption orders; provide procedures to implement requests under  
MCL 418.161(n); address issues raised by case law regarding overpayment reimbursement; require  
increased use of forms advising injured workers of rights and procedures. Rules regarding vocational  
rehabilitation will be updated to facilitate/provide for job search as required by statutory amendments  
and caselaw. Overall, language will be updated regarding the service of papers, vocational  
rehabilitation services, as well as general technical updates throughout.  
5. List names of newspapers in which the notice of public hearing was published and  
publication dates:  
Ann Arbor News Daily Edition June 13, 2021  
Detroit Legal News June 17, 2021  
The Mining Journal June 21, 2021  
6. Date of publication of rules and notice of public hearing in Michigan Register:  
7/1/2021  
7. Date, time, and location of public hearing:  
7/7/2021 12:30 PM at Room L-150, Cadillac Place Bldg. , 3026 W Grand Blvd, Detroit, MI  
8. Provide the link the agency used to post the regulatory impact statement and cost-benefit  
analysis on its website:  
https://ARS.apps.lara.state.mi.us/Transaction/RFRTransaction?TransactionID=159  
9. List of the name and title of agency representative(s) attending public hearing:  
Jack Nolish, WDCA Director  
Deb Outwater, WDCA Executive Secretary  
David Campbell, WDCA Agency Division Director  
Kris Kloc, WDCA Medical Claims Analyst  
10. Persons submitting comments of support:  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 3  
Jayson Chizick for Worker’s Compensation Section of the Michigan State Bar Association.  
Michigan Self-Insurers Ass’n and Michigan Ass’n for Justice Ad Hoc Stakeholder advisory group.  
Don Hannon, Associate Member Michigan Self-Insurer’s Association  
Dawn Drobnich, Executive Secretary, Michigan Self-Insurers’ Association  
Richard Warsh, Past President, Michigan Association for Justice  
Robert MacDonald, Past President, Michigan Association for Justice  
Alicia W. Birach: Foster, Swift, Collins & Smith.  
Dyke VanKoevering: General Counsel, Insurance Alliance of Michigan.  
11. Persons submitting comments of opposition:  
No Comments of Opposition  
12. Identify any changes made to the proposed rules based on comments received during the  
public comment period:  
Name &  
Comments made at Written  
Agency Rationale Rule number  
Organization public hearing  
Comments  
for change  
& citation  
changed  
1
Dawn  
Rule 1(b) should Wording changed §408.31(1)(b)  
Drobnich,  
be made more  
clear that the  
Director or a  
Magistrate retains magistrate in  
the authority to terms of  
to clarify options  
available to  
director and  
Rule 1(1)(b)  
Michigan Self-  
Insurers’  
Association  
require a party or determining type  
witness to appear of appearance.  
in person. There  
are circumstances  
where an  
appearance in  
person especially  
at trial enhances a  
magistrate’s  
ability to assess  
credibility and  
allows an  
opposing party to  
more effectively  
cross-examine a  
witness.  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 4  
We would  
2
Dyke  
Wording change to §408.31(1)(i)  
VanKoevering,  
suggest clarifying better reflect  
that these  
outcomes are  
industry standard Rule 1(1)(i)  
vocational  
Insurance  
Alliance of  
Michigan  
listed in priority rehabilitation  
order, and not  
merely  
counseling  
practices.  
alternatives of  
equal measure.  
Rule 1(m)’s  
definition of  
‘vocational  
evaluation’ needs purposes of job  
to be more clear training from  
that it applies in medical  
the context of  
Section 319  
Subrules (3) and Wording changes §408.31a(3)  
(5) require certain to clarify delivery  
3
4
Dawn  
Drobnich,  
Clarification to  
better distinguish (m)  
rehabilitation for  
§408.31(1)  
Michigan Self-  
Insurers’  
Association  
Rule 1(1)(m)  
rehabilitation  
Dyke  
VanKoevering,  
employer or  
of information  
Rule 1a(3)  
Insurance  
Alliance of  
Michigan  
employee actions between injured  
to take place  
either  
worker and  
employer.  
“immediately,” or  
“promptly.” Is  
there an intended  
difference  
between the two  
timelines?  
Should one term  
or the other be  
used more  
uniformly?  
5
Dawn  
Drobnich,  
Rule 1a(4)  
requires an  
Wording change to §408.31a(4)  
reflect that use of  
injured worker to WC-117 is not the Rule 1a(4)  
make a claim on only means of  
a specific form. worker injury  
Michigan Self-  
Insurers’  
Association  
This conflicts  
with the statute  
reporting. Changes  
to clarify  
that provides that employer response  
a claim can be  
made orally or in  
writing. MCL  
418.381(1)  
6
Dyke  
Subrule (5)  
Original rule  
§408.31a(5)  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 5  
VanKoevering,  
requires that the language found to Rule 1a(5)  
employer or be inconsistent  
carrier deliver to and confusing.  
Insurance  
Alliance of  
Michigan  
§408.31a(5)  
Rule 1a5(a)  
the employee  
documentation  
describing the  
employer or  
Changes made to (a)  
clarify.  
§408.33(2)(c)  
Rule 3(2)(c)  
carrier’s  
obligation to  
furnish  
reasonable and  
necessary  
medical care no  
later than “28  
days following an  
injury.” We  
would  
recommend the  
language be  
amended to state  
the deadline as  
“28 days  
following a report  
of injury” as until  
the injury is  
reported, the  
employer or  
carrier will not  
have knowledge  
of the event and  
delayed reporting  
may place the  
employer or  
carrier in a  
difficult timeline.  
Subrule (5)(a)  
states that  
insurers are not  
required to make  
payment to a  
physician “until  
the reports and  
itemized charges  
have been  
furnished to it.”  
On the other  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 6  
hand, R408.33(2)  
(c) states that  
“[m]edical (sic)  
bills become due  
and payable on  
the day the carrier  
receives the bill.”  
Is there potential  
conflict here that  
should be  
clarified?  
7
Dawn  
Drobnich,  
The business  
community  
objects to this  
proposal for  
various reasons made. Removal of & (c)  
including for its some of the  
Wording change to §408.33(2)(a)  
clarify the start of & (c)  
time when  
Michigan Self-  
Insurers’  
Association  
payment must be Rule 3(2)(a)  
belief that it  
penalty language  
conflicts with the to better comply  
current statute.  
with statute.  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 7  
8
Dyke  
Subrule (1)(h)(iv) Wording changes §408.36(1)(h)  
VanKoevering,  
provides that  
electronic service consistency in  
between the determining  
parties sent “after electronic filing  
to provide  
1(v)  
Insurance  
Alliance of  
Michigan  
Rule 6  
5:00 p.m.  
date.  
Lansing,  
Michigan time is  
deemed to be  
served on the  
next day that is  
not a Saturday,  
Sunday, or state  
holiday.” Subrule  
(6) provides that  
documents  
received by the  
agency “on or  
before 11:59 p.m.  
Lansing,  
Michigan time  
are considered  
filed on the same  
business day.” Is  
there a potential  
conflict here that  
should be  
clarified.  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 8  
Subrule (9) No change made §408.39(9)  
9
Dyke  
VanKoevering,  
provides that the since the sections  
“[f]ailure (sic) to not found to be in Rule 9(9)  
Insurance  
Alliance of  
Michigan  
comply with  
conflict.  
these rules may  
result in dismissal  
of the request for  
review.” Section  
418.837(3) of the  
code, however,  
provides that “[u]  
nless (sic)  
review is ordered  
or requested  
within 15 days  
after the date the  
order of the  
worker's  
compensation  
magistrate is  
mailed, or  
distributed  
electronically, to  
the parties, the  
order shall be  
final.” ----We  
would request the  
language be  
clarified to  
eliminate possible  
conflict.  
10  
Dawn  
The noticed  
Clarifies  
§408.40a(2)  
Drobnich,  
drafts of the rule requirements for  
published by the filing of petition to Rule 10a(2)  
Agency were not stop payment of  
Michigan Self-  
Insurers’  
Association  
as clear as they  
could be about  
what was  
benefits.  
necessary to file a  
petition to stop.  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 9  
11  
Dawn  
Drobnich,  
Rule 10a(6)  
would limit  
recoupment to  
Language clarified §408.40a(6)  
to provide  
clarification of  
Rule 10a(6)  
Michigan Self-  
Insurers’  
overpayments to magistrate  
instances where authority in  
Association  
an employee  
fraudulently  
concealed  
deciding claims  
for overpayment  
of benefits.  
earnings or to  
where a  
coordination of  
benefit error  
occurred. There  
may be other  
circumstances  
where  
recoupment of  
overpayment is  
warranted.  
12  
13  
Alicia W.  
Birach,  
Conflict in rule  
with statute  
language  
Corrected  
scrivener’s' error  
that was creating Rule 11 (b)  
confusion.  
§408.41(b)  
Foster, Swift,  
Collins &  
Smith  
Alicia W.  
Birach,  
Conflict in rule  
with statute  
language  
Corrected  
scrivener’s' error  
that was creating Rule 11(c)  
confusion.  
§408.41(c)  
Foster, Swift,  
Collins &  
Smith  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 10  
The proposed Wording changed §408.45a(3)  
14  
15  
16  
Dawn  
Drobnich,  
Rule 15a(3)-(4) to provide more  
appears to trigger flexibility in the  
& §408.45a  
(4)  
Michigan Self-  
Insurers’  
Association  
a formal  
vocational  
use of vocational  
evaluation and  
services.  
Rule 15a(3)  
& 15a(4)  
evaluation and  
rehabilitation of a  
worker, even  
when neither the  
employer or  
employee find it  
helpful or  
necessary, or  
possibly where  
liability is  
disputed.  
Dawn  
Drobnich,  
Consistent with Clarification of  
the proposed when vocational  
revisions to Rule assessment when Rule 15b  
§408.45b  
Michigan Self-  
Insurers’  
Association  
15a, we  
recommend  
be ordered and  
scheduled.  
changes to Rule  
15b that reflect a  
broader range of  
possible issues  
that may arise  
related to  
vocational  
rehabilitation n  
resulting in  
hearings before  
the Director.  
Dyke  
VanKoevering,  
To the extent that Expansion of  
a business entity notice  
§408.49  
Rule 19  
may request a  
requirements to  
Insurance  
Alliance of  
Michigan  
determination by clearly provide  
the Director  
opportunity for  
whether one or  
impacted parties to  
more individuals be aware of  
“are in covered  
employment,”  
proceedings and  
due process  
provided for all  
concerned.  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 11  
17  
Jayson Chizick, Commenting in  
General comment 2020-31-LE  
of support for  
2020-31 LE  
support of the  
Michigan State proposed rule set.  
Bar Association  
13.Date report completed:  
8/17/2021  
MCL 24.242 and 24.245  
;