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HB 5188

Worker's compensation: other; parties liable for redemption agreement fee; modify. Amends sec. 835 of 1969 PA 317 (MCL 418.835).

2025-2026 Regular Session Introduced by Joey Andrews and 27 co-sponsors

HB 5188 reallocates workers' compensation redemption agreement fee liability in Michigan, affecting who pays settlement-related costs.

bill electronically reproduced 10/30/2025
#worker'scompensation:employers #worker'scompensation:other
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WeVote Research Nonpartisan
Bill Summary · HB 5188

Legislative bill overview

HB 5188 modifies Michigan's workers' compensation law by amending Section 835 of the 1969 Workers' Disability Compensation Act to change liability provisions related to redemption agreement fees. The bill appears to alter who bears financial responsibility for fees associated with redemption agreements in workers' compensation settlements.

Why is this important

Redemption agreements allow injured workers to settle their workers' compensation claims for a lump sum, but fees associated with these settlements can significantly reduce what workers actually receive. This modification could shift financial burden between employers, insurers, and/or workers, directly affecting settlement amounts and dispute resolution in workers' compensation cases affecting thousands of Michigan workers annually.

Potential points of contention

  • Worker vs. insurer cost allocation: Clarifying who pays redemption fees could reduce worker settlement amounts if costs are shifted to injured parties rather than insurers or employers
  • Settlement fairness: Changes to fee liability may incentivize or discourage redemption agreements, affecting injured workers' ability to access lump-sum settlements versus ongoing benefits
  • Business impact: Shifting fees to employers or insurers could increase their workers' compensation costs, potentially affecting hiring and competitiveness

Compiled from official sources — confirm details with the bill’s official record.

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