Are illegal aliens entitled to Michigan Workers’ Compensation benefits?

 

To date, approximately two-thirds of the states have addressed the issue of whether or not undocumented aliens are entitled to Workers’ Compensation benefits.  The overwhelming majority of those states have determined that undocumented aliens are entitled to Workers’ Compensation benefits.

 

In a case of first impression, the Michigan Supreme Court granted leave to appeal in the consolidated cases of Sanchez v Eagle Alloy and Vasquez v Eagle Alloy. 

 

The Michigan Supreme Court heard oral arguments on April 20, 2004. 

 

The issues before the Supreme Court were as follows:

• Whether illegal aliens are contemplated within the meaning of “alien” and the Workers’ Disability Compensation Act?
• Whether the plaintiff’s (Sanchez and Vasquez), given their commission of illegal acts and crimes, were “under any contract of hire” necessary to be considered an employee under the Act?
• Whether illegal aliens are “unable to obtain or perform work because of commission of a crime?”
• If, in fact, illegal aliens are considered employees under the Act and benefits are suspended because of the commission of a crime, are benefits suspended from “day one” or from the date their illegal status and crime is discovered?

At present, based upon the Michigan Court of Appeals’ Decision, both Sanchez and Vasquez admitted use of fake documents to obtain employment constituted a “commission of a crime.”  However, the Court of Appeals reasoned that benefits were only suspended from the date the employer actually learned of the employee’s illegal status.          

 

To date, Michigan is the only state in the union where undocumented aliens are denied benefits because of “commission of a crime.” 

 

The fundamental foundation that underlies all issues before the Michigan Supreme Court is that, not only is it against the law for an undocumented alien to obtain work in the United States, it is also against the law for the employer to employ an illegal alien.

 

From an employer prospective, Eagle Alloy has argued that undocumented aliens; improper, legally unsanctioned presence and performance of work in this country demonstrates a rejection of the rule of law and that someone who comprehensively rejects the rule of law should not have the recourse to the privileges and benefits of the very same law that he has rejected.  This Michigan legislature did not intend to cover illegal acts or illegal status of employees.

 

Further, because it is impossible for an undocumented alien to lawfully perform employment in the United States of America, undocumented aliens are incapable of performing under a valid “contract of hire” and thus should not be considered employees under the Act.

 

Lastly, from an employer prospective, Eagle Alloy has argued that, because illegal aliens are incapable of obtaining or performing work “because of commission of a crime,” benefits must be suspended from “day one” because of their illegal status.  The rational for a suspension of benefits is rooted in mitigation principals.  Because of an employee’s illegal status, the employee can no longer lawfully obtain employment and conversely an employer can no longer offer that employee regular light-duty employment (once the employer is aware of the illegal status).  Thus, the employer loses one of its most fundamental defenses under the Workers’ Disability Compensation Act; the right to mitigate by returning an injured worker to reasonable or regular employment.

 

 

MICHIGAN SUPREME COURT ORDER

 

The Michigan Supreme Court issued an Order on July 23, 2004, by which the Court vacated the Appeals in the consolidated cases of Vasquez & Sanchez v Eagle Alloy. 

 

By vacating the Appeals, the Michigan Supreme Court has passed the buck and avoided having to address the issues presented.

 

In a well-reasoned dissent, Justice Markman disagreed with the majority that leave was improvidently granted.  Justice Markman would have addressed the issues pertaining to the legal consequences of an illegal alien’s status in Michigan and specifically the eligibility of such persons for Workers’ Compensation benefits.  Justice Markman made it clear that both claimants had committed illegal acts and were incapable of obtaining employment in the United States of America without further committing a crime.  In other words, an illegal alien is not lawfully employable.

 

Because, at all times while in this country an illegal alien is in violation of law and because it is impossible for an illegal alien to lawfully obtain employment in the United States, Justice Markman would have addressed the implications of undocumented alien’s illegal behavior, as it relates to the contractual circumstances under Michigan law.  He also would have addressed whether the legislature included illegal aliens within the coverage of the Workers’ Disability Compensation Act. 

 

Justice Kelly would have also granted leave based upon the proposition that the issues presented were jurisprudently significant. 

 

The published Court of Appeals Decision decided on January 7, 2003, by the Michigan Court of Appeals is now binding precedent.  Per the Court of Appeal’s Decision, the law is that undocumented aliens are only entitled to benefits until such time as the employer actually learns of the employee’s illegal status.  From the date the employer learns of the employee’s status, benefits are suspended based upon Section 361(1) and an undocumented employee’s “commission of a crime.”

 

As soon as a disabled employee obtains authority to live and work in the United States, then Section 361(1) would longer suspend their wage-loss benefits.

 

By failing to address the issues presented by undocumented aliens working in the State of Michigan, the Michigan Court of Appeals Decision stands and will ultimately perpetuate fraud.  Undocumented aliens will be much more inclined to conceal their undocumented status because, as long as their status is concealed, they will remain entitled to receive benefits.

 

Also, illegal aliens are entitled to medical benefits based upon a work injury.

 

To summarize, it will now be essential that an investigation be taken as soon as possible following an injury to establish the worker’s immigration status.  Wage-loss benefits are due and owing only until an employee’s undocumented status is discovered.

 

If you have any questions regarding the ramifications of this Decision, please feel free to contact us.