Jurisdiction is an important legal issue in any claim for workers’ compensation benefits. Establishing which state has jurisdiction determines which laws apply to the claim, sets the scope and limits of legal authority, and ensures legal matters are handled in an orderly, fair, and consistent manner. Jurisdiction establishes legal authority to hear and adjudicate issues and prevents overlapping claims. If it is later determined that a state does not have jurisdiction, any decisions made in a case can be found to be invalid.
MacArthur, MacArthur & Associates, PLLC, is a preeminent Michigan workers’ compensation law firm. Established in 1976, the firm provides legal advice, guidance, and representation to insurance companies, high-deductible insureds, and self-insured companies across a broad range of industries. We have worked with many of our clients for decades and consider ourselves partners in their success.
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Jurisdiction refers to a court’s legal authority to hear a case, and interpret and enforce the laws within a specific geographic area and over specific types of legal matters. Jurisdiction determines whether and where a case can be filed, and which government body is authorized to hear and rule on it.
Establishing jurisdiction is an important threshold question in any workers’ compensation claim. If a state does not have jurisdiction, the court and government agencies, including the state workers’ compensation agency, do not have legal authority to hear the case or issue legal rulings about it. Without proper jurisdiction, any decisions made in a case could be found to be invalid.
Workers’ compensation laws can vary significantly from state to state. Jurisdiction determines which state laws will apply. This, in turn, affects the type and amount of benefits that may be available, and whether the claim is even covered. Without proper jurisdiction, the workers’ compensation agency does not have legal authority to hear and issue rulings on the claim. The wrong law could be applied, and benefits might be wrongfully paid.
Workers’ compensation claims are typically handled by a state administrative agency. Establishing jurisdiction ensures the correct agency hears the claim and is lawfully empowered to make decisions about it. Allowing a claim to proceed in the wrong jurisdiction could prejudice the worker or employer or result in unnecessary delays, and could invalidate the claim.
Workers’ compensation coverage is tied to a specific jurisdiction. Jurisdictional rules may affect whether a worker is covered and the amount and type of benefits the injured worker may be entitled to receive.
Employees who work in multiple states or who travel between states for work might be eligible for workers’ compensation benefits in different or even multiple states. Establishing proper jurisdiction ensures injured workers do not duplicate claims or receive duplicate benefits.
Each jurisdiction can determine the benefits an injured worker is entitled to receive. These benefits can vary widely between states, and establishing the correct jurisdiction ensures the injured worker receives appropriate compensation for their injury.
Different jurisdictions have different timelines for filing claims and other documents. Establishing proper jurisdiction ensures the correct deadlines are applied.
The Michigan workers’ compensation agency has jurisdiction over “covered employers’” workers’ compensation claims in three situations:
Jurisdiction may be unclear in some situations. Other times, multiple states may have jurisdiction over the same incident. For example, suppose a person had a contract of employment that was signed in Michigan but their injury occurred in Ohio. Or, consider a flight attendant who resides in Michigan but whose flight took off in California and landed in New York, but the injury occurred in the air over Colorado. In these situations, it is important to understand which state (or states) can exercise jurisdiction. In cases where multiple states can exercise jurisdiction, an injured worker may be able to file a claim in both states. The state workers’ compensation agencies may agree to offset any workers’ compensation benefits that are awarded.
Jurisdiction can be a complicated and challenging topic. But it is a critical threshold issue, and employers and claims adjusters must be attentive to jurisdictional considerations. In cases where jurisdiction is unclear, it may be necessary to seek the advice of experienced legal counsel.
Quickly assessing whether a particular state has jurisdiction over a claim should be part of a sound claims management process and can result in significant time and cost savings. To help assess whether the Michigan workers’ compensation agency has jurisdiction over a claim,:
By following these steps, you can quickly analyze and resolve many jurisdictional matters with minimal time and effort. In more complex cases where there is a question as to where the incident occurred or where states might have concurrent jurisdiction, it is wise to consult with experienced legal counsel.
MacArthur & Associates has earned a reputation for developing winning strategies in workers’ compensation claims. We offer thorough investigations, thoughtful legal analyses, definite economic assessments, and candid advice. The firm has earned a Martindale-Hubbell Preeminent AV rating, a peer-reviewed rating designating the highest level of professional excellence.
Since 1976, we have helped our clients succeed by providing customized, cost-effective workers’ compensation defense. We routinely work with risk managers, claims professionals, human resource managers, and litigation adjusters who work for self-insured employers, high-deductible policyholders, insurance companies, and third-party administrators. We approach each claim with a disciplined, practical approach aimed at reaching the best possible resolution for our client.
To learn more, contact MacArthur & Associates today to discuss your workers’ compensation defense needs.
This article has been prepared by MacArthur, MacArthur & Associates, P.L.L.C. for instructional purposes only, free of charge, not for reproduction, sale, or distribution beyond the intended recipient.
