The Michigan Legislature passed Senate Bill 1596, and it was signed into law by Governor Jennifer Granholm on January 12, 2009. The new law amends the Workers’ Disability Compensation Act regarding jurisdiction over injuries suffered by employees working outside the State of Michigan. The Michigan Supreme Court, in Karaczewski v Farbman Stein & Co 478 Mich 28 (2007), held that the Michigan Workers’ Disability Compensation Act should be strictly construed to require that an employee prove both that the contract of hire was entered into in Michigan and that the employee was a resident of Michigan at the time of injury in order for the employee to recover workers’ compensation benefits from a Michigan employer, under Michigan Workers’ Compensation Law. Senate Bill 1596 provides that the Workers’ Compensation Agency has jurisdiction over all controversies arising out of injuries suffered outside the State of Michigan, if the injured employee was employed by an employer subject to the Act, and if either the employee was a resident of Michigan at the time of injury or the contract of hire was made in Michigan. As a practical matter, employees who work for Michigan-based companies who are injured out-of-state, would normally qualify for workers’ compensation benefits under the law of the state in which they are injured. The amendment to the statute makes it easier for such employees to also qualify for Michigan statutory workers’ compensation benefits. An employee may elect to receive benefits from one or both states. However, Michigan law provides that the Michigan employer is entitled to a credit for any benefits received from another state against the benefits the employee may receive under Michigan law. 01/28/09