Workers' Compensation Guide: Benefits & Deadlines

A nurse in navy scrubs wraps a bandage around the forearm of a man in a cap and work pants, with safety glasses and work gloves on the counter

In short

Workers' compensation pays for medical care and part of your lost wages after a work injury or work-related illness, and you don't have to prove anyone was at fault. In exchange, it's usually your only claim against your employer.
Deadlines depend on the state. In Michigan, tell your employer within 90 days and make your claim within two years (MCL 418.381(1)). Texas and California give you 30 days to report.
Michigan pays weekly wage-loss benefits of 80% of your after-tax average weekly wage, up to $1,201 a week for injuries in 2026 (MCL 418.351, 418.355; Workers' Disability Compensation Agency).
If a Michigan claim is denied, file an Application for Mediation or Hearing (Form WC-104A). The dispute goes to mediation or a magistrate, and either side can appeal a magistrate's decision to the Workers' Disability Compensation Appeals Commission within 30 days (MCL 418.847, 418.859a).
You can often also sue someone other than your employer who caused the injury, such as a driver, another contractor or an equipment maker. In Michigan, the comp insurer is generally repaid from that recovery (MCL 418.827).

You got hurt at work. Maybe you fell from a ladder, hurt your back lifting a load, or felt pain in your wrists build over months of the same motion. Now you’re worried about medical bills, missed paychecks and your job.

Workers’ compensation, usually called workers’ comp, is a system of benefits set up by state law, and by federal law for some jobs. It pays for your medical care and part of your lost wages after a work injury or work-related illness, and you don’t have to prove anyone was at fault. In exchange, it’s usually your only claim against your employer. Every state runs its own system with its own deadlines, so start now. Michigan’s rules are in the boxes marked “In Michigan.”

Hurt and not sure where you stand? Get a free case review. Four quick questions, no cost, no obligation.

What is workers’ compensation?

Think of it as a trade. You get medical care and wage benefits without proving your employer did anything wrong, and without a lawsuit. In return, the law generally limits your right to sue your employer (Legal Information Institute).

The benefits usually come from your employer’s insurance company, or from the employer itself if it self-insures. Comp pays only the benefits your state’s law lists, and pain and suffering generally isn’t one of them. For how comp compares with a lawsuit, see workers’ comp compared with a personal injury claim.

An empty warehouse with a polished concrete floor and a roll-up loading door

Are you covered?

Most employees are. Three things decide it.

Are you an employee or an independent contractor?

Comp covers employees. If you run your own business and sell your services to the public, you may be an independent contractor, and the company you work for generally doesn’t have to cover you. Each state has its own test, so if you aren’t sure, ask your state’s comp agency or a lawyer before assuming you’re not covered.

Does your employer have to carry it?

That depends on the state. Texas lets most private employers choose whether to carry comp; those that don’t are called non-subscribers (Texas Department of Insurance). Michigan covers all public employers and most private ones.

Do you work for the federal government, a railroad or a ship?

Federal law may apply instead. The U.S. Department of Labor runs comp programs for federal employees, longshore and harbor workers, coal miners with black lung disease and certain energy workers (U.S. Department of Labor; 5 U.S.C. § 8102). Railroad workers and seamen can sue their employer for an injury caused by its negligence (45 U.S.C. § 51; 46 U.S.C. § 30104).

What injuries and illnesses does workers’ comp cover?

In general, an injury is covered if your work caused it and it happened while you were doing your job. It doesn’t have to be a sudden accident. Depending on your state’s rules, comp can also cover injuries that build up over time, illnesses caused by work, such as from breathing dust or chemicals, and old conditions your job made worse.

Private employers reported 2.5 million nonfatal workplace injuries and illnesses in 2024. Over 2023 and 2024, the leading cause of cases needing days off, restricted duty or a job transfer was “overexertion, repetitive motion, and bodily conditions,” with 946,290 cases (Bureau of Labor Statistics). See the most common workplace accidents and construction site accidents.

Two workers in hard hats and dust masks at a drill press

In Michigan: A personal injury "arising out of and in the course of employment" is covered if work "causes, contributes to, or aggravates pathology" so that you're left with a condition medically different from what you had before (MCL 418.301(1)). A disease is covered if it comes from conditions "characteristic of and peculiar to the business of the employer," but not an "ordinary disease of life" that the public is generally exposed to (MCL 418.401(2)(b)). Heart conditions, mental disabilities and conditions of aging are covered only if work contributed to or worsened them "in a significant manner" (MCL 418.301(2)). Ordinary commuting generally isn't covered, while travel your job requires generally is, and an injury at an event whose main purpose is social or recreational isn't, which the agency says probably includes a company picnic (Workers' Disability Compensation Agency; MCL 418.301(3)). Ordinary carelessness doesn't cost you benefits, but "intentional and wilful misconduct" does (MCL 418.305), and so, the agency notes, can breaking a work rule that was clearly announced and regularly enforced.

What should you do right after a work injury?

In the first day or two:

Get medical care. Tell every provider the injury happened at work, and how.
Report the injury to your employer in writing. Include the date, time, place, what happened and every body part that hurts, and keep a copy. If the problem built up over time, report it as soon as you realize work may be the cause.
Don’t rely on your employer to file your claim. It’s up to you to make sure a claim is made on time. If your employer asks you not to file and offers to pay the bills itself, file anyway.

Deadlines are short in some states. Three examples, as of September 2026:

State	Tell your employer	Make your claim
Michigan	Within 90 days (MCL 418.381(1))	Within 2 years, to your employer or the state agency (MCL 418.381(1))
Texas	Within 30 days (Texas Department of Insurance)	Claim form to the state agency within 1 year (Texas Department of Insurance)
California	In writing within 30 days (Cal. Lab. Code § 5400)	Proceedings within 1 year of the injury or the last benefits provided (Cal. Lab. Code § 5405)

In Michigan, see how to file for workers’ comp, step by step.

What does workers’ comp pay?

Benefits generally fall into four groups: medical care, wage-loss benefits, help getting back to work, and benefits for the family after a fatal injury (U.S. Department of Labor; Legal Information Institute).

Medical care

Comp pays for reasonable and necessary treatment of the work injury, such as doctor and hospital care, surgery, medicine, therapy and crutches. Keep your appointments: gaps in treatment can make it harder to prove how badly you were hurt.

Wage-loss benefits

If your injury keeps you from working, or forces you into lower-paid work, comp replaces part of your lost pay with weekly checks. Your state’s law sets the formula, the weekly maximum and any waiting period. Comp paid under a workers’ compensation law is generally exempt from federal income tax, with exceptions, such as the part that reduces your Social Security benefits (IRS Publication 525). For the math, see how workers’ comp is calculated.

In Michigan: Weekly benefits are 80% of your after-tax average weekly wage, up to the state maximum (MCL 418.351(1)). Your average weekly wage is generally your pay, including overtime, in your highest-paid 39 of the 52 weeks before the injury, divided by 39 (MCL 418.371(2)). The maximum is set by the year you were hurt: $1,201 a week for 2026 injuries (MCL 418.355(2); Workers' Disability Compensation Agency, as of September 2026).

If you're off work more than seven days, benefits start on the eighth day, and if you're off 14 days or longer, the first week is paid too (MCL 418.311). The first check is due 14 days after your employer learns of the disability. If weekly benefits go unpaid more than 30 days after they're due and there's no dispute, the insurer owes you an extra $50 a day, up to $1,500 (MCL 418.801(1), (2)).

If you return to work at lower pay because of your restrictions, you receive 80% of the difference between your old and new after-tax weekly pay (MCL 418.301(9)(c)). Benefits can last as long as the disability does, but half of any Social Security retirement benefits you receive, or a pension or other benefit your employer paid for, can reduce them (MCL 418.354(1)). If yours aren't reduced that way and you're eligible for Social Security, they shrink by 5% a year after you turn 65, to half at 75, but not below the state minimum (MCL 418.357).

Benefits for a permanent loss

Each state handles permanent injuries, such as losing a hand or an eye, in its own way.

Help getting back to work

If you can’t return to the kind of work you did before, comp may pay for vocational rehabilitation: counseling, retraining and help finding a new job.

Benefits for your family after a death

In 2024, 5,070 workers died from work injuries in the U.S., one every 104 minutes (Bureau of Labor Statistics). When a work injury or illness is fatal, comp generally pays benefits to the worker’s dependents (Legal Information Institute). The family may also have a claim against someone else who caused the death; see wrongful death claims.

Who chooses your doctor?

It depends on your state. In Texas, for example, if your employer’s coverage uses a certified health care network, you must choose a doctor from the network’s list (Texas Department of Insurance).

Whoever treats you, describe how you were hurt and every symptom; those records become the core evidence in your claim. The insurer may also send you for an exam by a doctor it picks and pays for, often called an independent medical examination (IME).

In Michigan: For the first 28 days of treatment, your employer or its insurer has the right to choose your doctor. After that, you can switch to a doctor of your choice by telling your employer the doctor's name and that you plan to treat with that doctor, preferably in writing (MCL 418.315(1); Workers' Disability Compensation Agency). Your employer can object, and a magistrate can order you to stop seeing that doctor if the employer shows cause (MCL 418.315(1)). If the insurer asks, you must attend an exam by a doctor it chooses and pays for. You can bring your own doctor at your own expense, you're entitled to a copy of the report within 15 days of asking, and if you refuse or obstruct the exam, your right to benefits is suspended and benefits for that period may be forfeited (MCL 418.385).

What if your claim is denied or your checks stop?

Your employer’s insurance company, or your employer if it’s self-insured, decides first whether to accept your claim. If it says no, disputes part of the claim or cuts off your checks, you can challenge that through your state’s dispute process. The insurer may argue, for example, that the injury didn’t happen at work or that you’ve recovered. Get your medical records, including your doctor’s opinion on the cause, and find out your deadline to challenge the decision.

In Michigan: The Workers' Disability Compensation Agency resolves disputes (MCL 418.841(1)). To challenge a denial or a cutoff, file an Application for Mediation or Hearing (Form WC-104A) (MCL 418.847(1); Workers' Disability Compensation Agency). The case goes to mediation first if, for example, your employer has no insurance, you're claiming only medical or rehabilitation benefits, or you don't have a lawyer. Otherwise, or if mediation doesn't settle it, a workers' compensation magistrate hears the case (Workers' Disability Compensation Agency). The hearing is held in the area where you were hurt, and you must prove your claim by a preponderance of the evidence, meaning more likely than not (MCL 418.851).

Either side can appeal the magistrate's decision to the Workers' Disability Compensation Appeals Commission within 30 days after it's sent (MCL 418.859a(1)). That commission replaced the Michigan Compensation Appellate Commission, which was abolished in 2019 (Executive Order 2019-13). While an appeal is pending, the insurer must pay 70% of the weekly benefit the magistrate awarded and provide the medical care ordered, starting from the date of the award (MCL 418.862).

Claim denied or checks cut off? Get a free case review. Four quick questions, no cost, no obligation.

Can you settle a workers’ comp claim?

In many cases, yes. A settlement usually trades some or all of your future benefits for a lump sum, and depending on your state, it may need approval from the comp agency or a judge. A settlement can close your claim for good, including future medical care for the injury, so know what you’re giving up before you sign. See our guide to workers’ comp settlements.

How are workers’ comp lawyers paid?

Comp fees can follow special rules: your state may cap the percentage or require the comp judge to approve the fee. Get any fee agreement in writing, and ask what case costs you could owe. For fees in injury lawsuits, see how injury lawyers get paid.

Can you sue your employer or anyone else?

Workers’ compensation is usually your only claim against your employer, even if the employer was careless. This is the exclusive-remedy rule, and the exceptions are narrow and vary by state.

You can often also sue someone else who caused the injury, such as another contractor, a driver or an equipment maker. This third-party claim is a personal injury claim, so it can pay for losses comp doesn’t cover, such as pain and suffering and the rest of your lost wages, but you have to prove the other party was at fault. See when you can sue after a workplace injury.

In Michigan: Workers' comp is your "exclusive remedy" against your employer (MCL 418.131(1)). For an injury the Act covers, you can sue your employer only if:

it failed to carry the required workers' comp coverage (MCL 418.641(2)), or
it committed an intentional tort: a deliberate act by which it specifically intended an injury. It's treated as intending one if it "had actual knowledge that an injury was certain to occur and willfully disregarded that knowledge" (MCL 418.131(1)). Knowing a job was risky, or being careless about safety, isn't enough.

If your employer was an uninsured subcontractor, the contractor that hired it can owe your comp benefits (MCL 418.171(1)).

Taking comp doesn't stop you from suing anyone other than your employer or a coworker who is legally responsible for the injury (MCL 418.827(1)). From any recovery, the costs of getting it come off first. Your employer or its insurer is then repaid the benefits it has paid or owes to date, and the rest goes to you as an advance on future comp benefits (MCL 418.827(5)). After a car crash at work, though, the comp insurer generally can be repaid out of what you recover from the at-fault driver only for comp beyond what no-fault insurance would have paid, such as wage-loss benefits after no-fault's three years of income benefits end (Great American Ins Co v Queen, Michigan Supreme Court, 1980; MCL 500.3107(1)(b)). The lawsuit generally must be filed within three years of the injury (MCL 600.5805(2)), and if you haven't sued within one year, your employer or its insurer can sue in your name (MCL 418.827(1)). If you were hurt in a car crash while working, workers' comp benefits are subtracted from your no-fault PIP benefits (MCL 500.3109(1)); see what Michigan no-fault pays.

Can your employer fire you for filing a claim?

Punishing you for claiming comp is against the law in states such as Texas and Michigan; in Texas, you can file a complaint with the Texas Workforce Commission (Texas Department of Insurance). But neither state’s comp law requires your employer to offer you work after an injury (Workers’ Disability Compensation Agency; Texas Department of Insurance). You may also be eligible for leave under the federal Family and Medical Leave Act (Workers’ Disability Compensation Agency). See can you be fired while on workers’ comp? for your rights and deadlines.

What to do next

Get treated. Tell every provider it’s a work injury, and follow the treatment plan.
Report the injury in writing today, and keep a copy. The deadline is 90 days in Michigan and 30 days in Texas and California.
Make sure a claim is actually filed. Don’t rely on your employer. In Michigan, if your employer won’t report it, file Form WC-117 with the Workers’ Disability Compensation Agency.
Keep a file. Save medical records, bills, pay stubs, insurer letters, a mileage log and witnesses’ names.
Get a free case review before you sign anything. A lawyer can check your deadlines, your benefit amount and whether someone else should also pay. Get a free case review, or, if you were hurt in Michigan, compare Michigan injury lawyers.

What waiting can cost

Your claim. A missed notice or claim deadline can cost you benefits. In Michigan, you have 90 days to tell your employer and two years to make the claim (MCL 418.381(1)).
Back benefits. In Michigan, benefits generally can’t be paid for any period more than two years before you file an application for hearing (MCL 418.381(2)). If you were already paid weekly benefits and apply to have them restarted, the limit is generally one year (MCL 418.833(1); Martin v Somberg-Berlin Metals Co, Michigan Supreme Court, 1980).
Control of a lawsuit against someone else. In Michigan, if you haven’t sued a responsible third party within a year, your employer or its insurer can sue in your name, and the lawsuit generally must be filed within three years (MCL 418.827(1); MCL 600.5805(2)).
Evidence. Equipment gets repaired, video gets recorded over and coworkers move on.

For every Michigan deadline in one place, see Michigan personal injury deadlines.

What a good outcome looks like

Your medical bills go to the insurer, not to you. Your weekly checks arrive on time, figured from your real wages. If you can’t go back to your old job, you get help finding new work. If someone other than your employer caused the injury, that person or company pays for what comp doesn’t cover. And if you settle, you know exactly what you’re giving up, including future medical care. From wondering whether workers’ comp covers you to knowing what it pays, who chooses your doctor and what to do if your claim is denied.

For more on injuries at work, browse the workplace injury guides, or see Michigan personal injury law in plain English.

Frequently asked questions

How long do I have to report a work injury in Michigan?

Tell your employer within 90 days after the injury, or after you knew or should have known about it, and make your claim within two years, either to your employer or in writing to the Workers' Disability Compensation Agency (MCL 418.381(1)). Report it in writing and keep a copy. If your employer won't report the claim, you can file Form WC-117, Employee's Report of Claim, with the agency yourself.

How much does workers' comp pay in Michigan?

Weekly wage-loss benefits are 80% of your after-tax average weekly wage, up to a maximum set for the year you were hurt: $1,201 a week for 2026 injuries (MCL 418.351, 418.355; Workers' Disability Compensation Agency). Checks start after a seven-day waiting period, and if you're off work 14 days or more, you're paid for the first week too (MCL 418.311). Medical care is covered separately, with no waiting period.

Can I choose my own doctor for a Michigan workers' comp injury?

After the first 28 days, yes. For the first 28 days of treatment, your employer or its insurer can choose the doctor. After that, you can switch by giving your employer the new doctor's name and saying you intend to treat with that doctor, preferably in writing (MCL 418.315(1); Workers' Disability Compensation Agency). Your employer can object, and a magistrate decides.

Can I sue my employer for a work injury?

Usually not. Workers' compensation is generally your only claim against your employer, even if it was careless. In Michigan, you can sue your employer only if it failed to carry the required coverage (MCL 418.641(2)) or for an intentional tort: a deliberate act by which it specifically intended an injury. It's treated as intending one if it had actual knowledge that an injury was certain to occur and willfully disregarded that knowledge (MCL 418.131(1)). You can often sue someone else who caused the injury, such as another contractor, a driver or an equipment maker (MCL 418.827(1)).

Are workers' comp benefits taxable?

Generally not. The IRS says workers' compensation paid under a workers' compensation law is fully exempt from federal income tax, with exceptions, such as the part that reduces your Social Security benefits (IRS Publication 525). Michigan's agency says comp benefits generally aren't subject to state or federal income tax.

How much does a workers' comp lawyer cost in Michigan?

A magistrate must approve the fee (MCL 418.858(1)), and the agency's rules cap it. After case expenses are deducted, the cap is 30% of benefits recovered through a hearing or paid after an application for hearing is filed. For a settlement reached while an application is pending, it's 20% of the first $100,000 and 15% of the rest, for injuries after December 10, 2021 (Mich Admin Code R 408.44). A lawyer can charge less.

Sources

MCL 418.115, Employers covered by the Act · Michigan Legislature
MCL 418.118, Household domestic workers · Michigan Legislature
MCL 418.131, Workers' compensation as the exclusive remedy; intentional tort exception · Michigan Legislature
MCL 418.161, Definition of employee · Michigan Legislature
MCL 418.171, Liability of a principal for an uninsured contractor's employees · Michigan Legislature
MCL 418.301, Compensable injuries; disability and wage loss; reasonable employment; retaliation · Michigan Legislature
MCL 418.305, Intentional and wilful misconduct · Michigan Legislature
MCL 418.311, Waiting period for weekly benefits · Michigan Legislature
MCL 418.315, Medical care; choice of physician; attendant care · Michigan Legislature
MCL 418.319, Medical and vocational rehabilitation · Michigan Legislature
MCL 418.321, Death benefits · Michigan Legislature
MCL 418.335, Death benefits: remarriage and children's age limits · Michigan Legislature
MCL 418.345, Last illness, funeral and burial expenses · Michigan Legislature
MCL 418.351, Weekly benefits for total disability · Michigan Legislature
MCL 418.354, Coordination of benefits (Social Security retirement, employer pensions and disability plans) · Michigan Legislature
MCL 418.355, Maximum weekly rate · Michigan Legislature
MCL 418.357, Reduction of weekly benefits at age 65 · Michigan Legislature
MCL 418.361, Specific losses; total and permanent disability · Michigan Legislature
MCL 418.371, Average weekly wage · Michigan Legislature
MCL 418.381, Notice and claim deadlines · Michigan Legislature
MCL 418.385, Examinations requested by the employer or insurer · Michigan Legislature
MCL 418.401, Occupational disease; definitions · Michigan Legislature
MCL 418.641, Civil action against an employer that fails to secure compensation · Michigan Legislature
MCL 418.801, When compensation is due; late-payment penalties · Michigan Legislature
MCL 418.827, Third-party liability · Michigan Legislature
MCL 418.835, Redemption of liability · Michigan Legislature
MCL 418.836, Approval of redemption agreements · Michigan Legislature
MCL 418.841, Disputes submitted to the agency · Michigan Legislature
MCL 418.847, Mediation or hearing on an application · Michigan Legislature
MCL 418.851, Hearings before a magistrate; burden of proof · Michigan Legislature
MCL 418.858, Approval of attorney fees · Michigan Legislature
MCL 418.859a, Claim for review (appeal) · Michigan Legislature
MCL 418.862, Payments while an appeal is pending · Michigan Legislature
MCL 500.3107, PIP benefits (work loss limited to the first three years) · Michigan Legislature
MCL 500.3109, Other government benefits subtracted from PIP benefits · Michigan Legislature
MCL 600.5805, Injuries to persons or property; period of limitations · Michigan Legislature
Great American Ins Co v Queen, 410 Mich 73 (1980) · Michigan Supreme Court (via the Caselaw Access Project, Harvard Law School Library)
Workers' Disability Compensation Agency General Rules, R 408.31 to R 408.59 (R 408.44, Attorney fees; R 408.45, Travel expenses; amended effective December 10, 2021) · Michigan Office of Administrative Hearings and Rules
Michigan Court Rules: MCR 8.121, Contingent fees in personal injury cases (updated September 2, 2026) · Michigan Supreme Court
Employees' Information · Michigan Workers' Disability Compensation Agency
Frequently Asked Questions: Filing a Claim · Michigan Workers' Disability Compensation Agency
Frequently Asked Questions: Eligibility for Workers Compensation · Michigan Workers' Disability Compensation Agency
Frequently Asked Questions: Medical Benefits · Michigan Workers' Disability Compensation Agency
Frequently Asked Questions: Wage Benefits · Michigan Workers' Disability Compensation Agency
Frequently Asked Questions: Return to Work · Michigan Workers' Disability Compensation Agency
Frequently Asked Questions: Miscellaneous (checking an employer's coverage) · Michigan Workers' Disability Compensation Agency
A Summary of Your Rights and Responsibilities Under Michigan Workers' Compensation (WC-PUB-001, April 2026) · Michigan Workers' Disability Compensation Agency
Michigan Workers' Disability Compensation Rights and Responsibilities (WC-PUB-006, May 2026) · Michigan Workers' Disability Compensation Agency
State Average Weekly Wage Chart (maximum weekly rates, 1982 to 2026) · Michigan Workers' Disability Compensation Agency
Travel Reimbursement Rates for Injured Employees · Michigan Workers' Disability Compensation Agency
Workers' Disability Compensation Appeals Commission · Michigan Department of Labor and Economic Opportunity
Executive Order 2019-13, Department of Labor and Economic Opportunity (creating the Workers' Disability Compensation Appeals Commission) · Office of the Governor of Michigan
Employer-Reported Workplace Injuries and Illnesses, 2023-2024 (news release USDL-26-0101, January 22, 2026) · U.S. Bureau of Labor Statistics
Census of Fatal Occupational Injuries Summary, 2024 (news release USDL-26-0230, February 19, 2026) · U.S. Bureau of Labor Statistics
Workers' Compensation · U.S. Department of Labor
5 U.S.C. § 8102, Compensation for disability or death of a federal employee · Office of the Law Revision Counsel, U.S. House of Representatives
45 U.S.C. § 51, Liability of railroads for injuries to employees (Federal Employers' Liability Act) · Office of the Law Revision Counsel, U.S. House of Representatives
46 U.S.C. § 30104, Personal injury to or death of seamen (Jones Act) · Office of the Law Revision Counsel, U.S. House of Representatives
Publication 525 (2025), Taxable and Nontaxable Income: Workers' Compensation · Internal Revenue Service
Workers' Compensation Insurance Coverage (employer fact sheet) · Texas Department of Insurance, Division of Workers' Compensation
Injured employee FAQ · Texas Department of Insurance, Division of Workers' Compensation
Employer FAQ · Texas Department of Insurance, Division of Workers' Compensation
California Labor Code § 5400, Written notice of injury within 30 days · California Legislative Information
California Labor Code § 5405, One-year period to begin proceedings · California Legislative Information
Workers' compensation · Legal Information Institute, Cornell Law School
MCL 418.833, Further compensation; limit on benefits before an application · Michigan Legislature
Martin v Somberg-Berlin Metals Co, 407 Mich 737 (1980) · Michigan Supreme Court (via the Caselaw Access Project, Harvard Law School Library)

Updated September 25, 2026

This guide is general information, not legal advice, and laws change. For advice about your situation, talk to a lawyer licensed in your state. Reading this page or contacting us does not create an attorney-client relationship.

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