Workers' compensation is the system used to provide wage replacement, medical, and rehabilitation benefits to workers who suffer a work-related injury.

Workers’ Compensation is an employee benefit established in 1912 by the Michigan Legislature. It is administered by the Michigan Department of Labor and Economic Opportunity, Workers’ Disability Compensation Agency and covers most employees. Compensation is provided for disability or death as a result of a work-related injury or disease, without regard to who may be at fault. Benefits are paid by employers (either directly or through their insurance carriers) and should not be confused with unemployment compensation, hospital, health, or accident insurance.