Michigan Municipal League Workers' Compensation Fund Settlements

Settlement Overview

The Michigan Municipal League (MML) administers a workers' compensation fund that serves local governments and their employees. When an injury claim is denied or disputed, the fund's settlement process allows municipalities to negotiate a resolution without prolonged litigation. Settlements typically cover medical expenses, lost wages, and, in some cases, permanent impairment benefits.

Key Settlement Types

1. Medical and Wage Reimbursement – Reimbursement for out‑of‑pocket medical costs and a percentage of pre‑injury wages, usually up to 75% of the claimant's average weekly wage.

2. Permanent Impairment Compensation – Lump‑sum payments when an injury results in a lasting functional limitation, calculated using the American Medical Association's Guides to the Evaluation of Permanent Impairment.

3. Settlement for Legal Fees – The fund may cover attorney fees up to a capped amount, often 25% of the total settlement value.

Settlement Process Steps

• Claim submission and initial review by the MML claims office.
• Independent medical evaluation to assess injury severity.
• Negotiation meeting between the municipality, claimant, and MML representatives.
• Drafting of a settlement agreement outlining payments, release clauses, and confidentiality terms.
• Final approval by the fund's board and execution of payment.

Factors Influencing Settlement Amounts

Best Practices for Municipalities

• Maintain detailed incident reports to support claim validity.

• Engage early with the MML claims office to identify potential settlement issues.

• Consider alternative dispute resolution methods, such as mediation, to reduce costs.

• Document all negotiations to ensure compliance with state regulations and fund policies.