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NEW BILL PROTECTS ILLEGAL ALLIENS' RIGHT TO WORKERS' COMPENSATION

NEW BILL PROTECTS ILLEGAL ALIENS’ RIGHT TO WORKERS’ COMPENSATION On December 11, 2007, majority floor leader, Steve Tobocman (D-Detroit) and Senator Hansen Clarke (D-Detroit) introduced legislation apparently intended to nullify the Court of Appeals’ decision in Sanchez v Eagle Alloy, Inc., 254 Mich App 651, 658 NW2d 510, appeal granted, 469 Mich 955, 671 NW2d 874 (2003), vacated, application denied, 471 Mich 851, 684 NW2d 342 (2004) The bill proposes to amend §361 of the Workers’ Disability Compensation Act (MCL 418.361), adding the following language at the end of subsection (1): ""As used in this subsection, “commission of a crime” does not include an alien’s working without employment authorization or an alien’s use of false documents to obtain employment or to seek work."" In Sanchez, the Michigan Court of Appeals held that, once it was discovered that the employee was an undocumented, illegal alien, and the employer could no longer employ him, he was no longer entitled to weekly wage loss benefits. The Court reasoned that, by working without proper legal authorization, the employee was committing a crime under a federal law, the Immigration Reform and Control Act (IRCA), and was, therefore, barred from receiving wage loss benefits under MCL 418.361(1). Although initially granting leave to appeal the decision of the Court of Appeals, the Michigan Supreme Court later vacated the grant of leave to appeal, leaving the opinion of the Court of Appeals as the binding precedent on the illegal alien issue. The press release issued by the sponsoring legislators seems to include a misunderstanding that “all workers in Michigan . . . pay into the workers’ compensation fund” and have their wages taxed to provide workers’ compensation coverage. There is no state operated workers’ compensation fund in Michigan. Workers’ compensation coverage in Michigan is funded by employers, not employees. We shall follow the progress of this bill and keep you apprised of any significant developments. 1-4-08

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