Mich. Admin. Code R. 408.40 - Stoppage, reduction, or suspension of compensation

Rule 10.

(1) If compensation is being paid under an order or award of the magistrate, workers' disability compensation appeals commission, or an appellate court, then compensation may not be discontinued or reduced without a further order or award, except as provided in subrules (3) and (4) of this rule and sections 301(8), 301(9)(c), and 401(6) and 301(9)(c) of the act, MCL 418.301 and 418.401.

(2) At the time of filing an application requesting a stoppage of compensation, the moving party shall provide to the claimant and counsel, if represented, the following:

(a) Proof of payment of compensation to within 15 days of the date of the filing of a petition to stop compensation and either:

(i) An affidavit stating that the employee has returned to gainful employment paying wages at or greater than his or her average weekly wage at the time of injury and that substantially describes the nature of the employment.

(ii) A signed statement from 1 of the following:

(A) A physician stating that the employee is able to return to unrestricted employment.

(B) A physician stating that the employee is able to return to restricted employment accompanied by an affidavit demonstrating that such reasonable employment has been offered, or is reasonably available, to the employee.

(C) A physician stating that the conditions found to be work-related cease to exist and are no longer a cause of current wage loss.

(D) Proof of any other ground for stopping benefits permitted by law.

(3) Upon receipt of an application requesting a stoppage of compensation, the agency shall schedule a hearing with a magistrate within 60 days.

(4) If a letter that carries a compensation check is returned by the United States Post Office unopened, and if a diligent search has been made for the party to whom compensation payment is due under the terms of an order or award, then the party liable for payment may suspend payment upon filing with the agency an affidavit that the check was returned and a diligent search was made to locate the party. The suspension may not prejudice the reinstatement of suspended payments.

(5) Upon filing of the report required by R 408.31a(6)(e) and notification to an employee, compensation benefits may be reduced in accordance with the act for changes in dependency, coordination of benefits, wages earned, and age 65 reductions.

(6) Except as provided under section 354 of the act, MCL 418.354, where the carrier, PEGSISF, first responder presumed coverage fund, or self-insurers' security fund has voluntarily paid benefits or paid benefits pursuant to a voluntary pay agreement, no reimbursement of previously paid benefits may be ordered against the employee unless the employer or carrier establishes that the employee concealed post-injury earnings, or establishes that benefits were overpaid as a result of a mathematical, technological, or clerical error. Reimbursement of previously paid benefits shall not be ordered where an employer or carrier unreasonably changes its position regarding whether a condition is work-related or whether a claimant was disabled. If an overpayment occurs as result of a mathematical, technological, or clerical error, the employer or carrier shall not recoup overpayments by reducing ongoing weekly benefits greater than 50% as provided in section 354(9) of the act, MCL 418.354. A magistrate may, in his or her discretion, waive reimbursement of an overpayment upon an employee's showing of undue harm. The magistrate may take into consideration whether recoupment of an overpayment would not serve the purposes of the act.

Notes

Mich. Admin. Code R. 408.40

1979 AC; 1980 AACS; 1998-2000 AACS; 2021 MR 23, Eff. 12/10/2021