Mr. White moved that the Senate concur in the substitute recommended by the committee.

The motion prevailed.

Mr. White moved that the bill as substituted be ordered reprinted and that it be made a special order for Tuesday, April 11, at 2:30 o'clock p. m.

The motion prevailed.

The following is the substitute:

A bill to promote the general health and welfare of the people of this State by providing compensation for accidental injuries or death of workmen arising out of and in the course of employment, and to prescribe the conditions and procedure governing the determination of the amount and the payment of such compensation.

The People of the State of Michigan enact:

Section 1. If any employe to whom this act applies shall receive personal injury by accident arising out of and in the course of his employment, his employer shall, subject as hereinafter mentioned, be liable to pay compensation to the said employe in accordance with the provisions. of this act; provided that the employer shall not be liable in respect of any injury to the workman which is caused by the wilful carelessness of the workman, or in whole or in part by intoxication from the use of liquor or drugs or by any breach of any statutory regulation by that workman.

This act shall apply to all industries, trades and occupations except domestic service and agricultural industries, provided the workman who is injured and his employer or employers shall have elected according to section 3 of this act to come under the provisions of this act.

Sec. 2. Nothing in this act shall effect the liability of the employer to a fine or penalty under any other statute.

Sec. 3. Every employer desiring to be subject to the provisions of this act and to be entitled to the privileges and advantages therein shall file notice of such election with the Commissioner of Labor and shall deliver to each of his workmen notice in writing to the effect that he accepts the provisions of this act. The filing and delivery of such notices shall constitute an acceptance and operate to subject such employer to all the provisions of this act until such time as he shall give notice to the contrary to each of his said employes and to the Commissioner of Labor. Sec. 4. Any employe as a part of his contract of hiring shall be deemed to have accepted and to be subject to the provisions of this act, if at the time of the accident on which liability is claimed;

(a) The employer charged with such liability is subject to the provisions of this act;

(b) At the time of entering into his contract of hire, express or implied, with such employer, such workman shall not have given to his employer notice in writing that he elects not to be subject to the provisions of this act. Or in the event such contract of hiring was in force at the time the employer elects to become subject to the provisions of this act, such workman shall remain in the service of such employer for thirty days after the employer so becomes subject to this act without giving such employer notice in writing that he elects not to become subject to the provisions of this act.

(c) If any workman, whose employer is not subject to the provisions of this act, desires to become entitled to the privileges herein he shall notify the employer in writing and such employer shall be deemed to have accepted and to be subject to this act as to such workman from the time of the receipt of such workman's notice unless he shall within ten days thereafter have notified such workman in writing that he refuses to be subject to this act and unless he shall have within the same time transmitted a like notice to the Commissioner of Labor.

Sec. 5. No common law or statutory right to recover damages for injuries or death sustained by any workman while engaged in his line of duty as workman (as limited in section 6 hereafter), who shall be subject to the provisions of this act as provided in section 4, other than the compensation herein provided, shall be available to any workman or his representatives, his heirs, or to any one dependent upon him, or legally entitled at common law or by any statute other than this to bring any action for damages for such injuries or death.

Sec. 6. No compensation shall be allowed for the first two weeks after injury received, except that covered by sections 7 and 8, nor in any case unless the employer has actual knowledge of the injury or is notified within the period specified in section 16.

Sec. 7. During the first two weeks after the injury the employer shall furnish reasonable medical and hospital services and medicines, when needed, not to exceed one hundred dollars in value, unless the employe refuses to allow them to be furnished by the employer.

Sec. 8. In case the injury causes death within the period of one year, the reasonable funeral expenses not to exceed one hundred dollars shall be paid by the employer.

Sec. 9. In case the injury causes death within the period of three hundred weeks, the compensation shall be in the amounts and to the persons following:

(a) If there be no dependents, then the medical, hospital, and funeral expenses;

(b) If there are wholly dependent persons at the time of death, then a payment of fifty per cent of the weekly wage to be made at the intervals when such wage was payable, and to continue for the remainder of the period between the death and the end of the three hundred weeks after the occurrence of the injury, but in no case to continue longer than three hundred weeks after the injury or to amount to more than three thousand dollars in the aggregate. At the option of the persons entitled thereto, the whole of such payment shall be considered due at once and shall be so payable. A surviving wife or surviving minor children shall be considered wholly dependent persons;

If the deceased leave only persons partially dependent, they shall receive only that proportion of the benefits provided for those wholly dependent which the amount of wage contributed by the deceased to such partial dependents at the time of injury bears to the total wage of the deceased, and shall be payable as provided in subdivision (b); (d) The entire compensation granted by this act in case of death shall be paid to one of the following persons, if dependent, who shall be entitled to receive such payments after the due date in the order in which they are named:

(1) Husband or wife, as the case may be; (2) Guardian of children;

(3) Father and mother, or the survivor of them; (4) Sisters and brothers; (5) Grandparents; (6) Grand-children.

Payment to a person subsequent in right shall be lawful, and shall discharge all claim therefor if the person having the prior right has not claimed the payment prior to the time when the same is in fact made. (e) The person to whom the payment is made shall apply the same to the use of the several beneficiaries according to their respective claims upon the decedent for support. In case any payee or employer is not certain as to the person to whom payment or distribution should be made, and in case any beneficiary is not satisfied with the distribution thereof; application may be made to the Probate Court to designate the person to whom payment shall be made and the apportionment thereof among the beneficiaries; and payment and distribution shall thereafter be made in accordance with the decision of said Court.

(f) Upon the death of any dependent the periodical compensation to which he had been entitled shall be paid to such other dependents as may survive. On the death of all dependents such compensation shall

cease.

Sec. 10. In case of temporary or permanent total disability of the em ploye from the time the payment period begins until the end of the 300 weeks period or during any portion thereof, the compensation shall be 50 per cent. of the average weekly wage during such disability; payment to be made at the intervals when such wage was payable, but in no case continue longer than 300 weeks from the injury nor exceed $10.00 per week, nor be less than $4.00 per week, nor amount to more than three thousand dollars for that injury.

Sec. 11. In case of temporary or permanent partial disability the employe shall receive 50 per cent. of the difference between the amount of the average weekly wage before the accident and the average weekly wage he is earning or is able to earn in some suitable employment or business after the accident but not to continue more than 300 weeks in time from the injury nor to exceed $10.00 per week nor to amount to more than three thousand dollars for that injury.

Sec. 12. (a) The amounts payable periodically under the foregoing Sections may on the application of any party interested, be commuted to one or more lump sum payments by an order of the Probate Court of the county where the accident occurred, at any time if special circumstances be found which in the judgment of the Probate Court require the same.

(b) The said Probate Court may at any time allow any employer or any insurer of such employer to compromise and settle any award or liability under this act, by the transfer of property, or the settlement of an annuity or other form of benefits: Provided, That the same be in the interests of justice.

Sec. 13 (a) When the employe is employed at the time of the injury in a regular capacity at a fixed and reasonable wage which remains unaltered substantially throughout the year, either in his own case or in the case of persons engaged in like employment the wage taken as the basis of compensation under the foregoing sections shall mean the wage he is actually receiving.

(b) Where the employe is at the time of the injury employed other than as above, the wage so taken shall be an average or fair wage which

the particular employe ought to receive on a reasonable basis, considering the rate he has been getting, his ability and willingness to work, the nature of the service he was performing, and all of the other circumstances of the case.

Sec. 14. (a) In case the employe was a minor of such age and experience when injured that under natural conditions he would be expected to receive increase of wages, this fact may be considered in arriving at his reasonable wage, to conform to the spirit of this act;

(b) The compensation hereunder shall never be vested except subject to such changes as the provisions of this act allow.

Sec. 15. If it be found as a fact by the Board of Arbitrators in its award that the employer had actual knowledge of the occurrence of the injury, the notice provided for under Section 16 shall not be essential. Sec. 16. (a) Unless the employer shall have actual knowledge of the occurrence of the injury, or unless the employe or some one in his behalf, or some of the dependents or some one in their behalf or some other person shall give notice thereof to the employer within fourteen days of the occurrence of the injury, then no compensation shall be allowed until such notice is given or knowledge obtained.

(b) If the notice is given or the knowledge obtained within thirty days, no want, failure, or inaccuracy of a notice shall be a bar to obtaining compensation, unless the employer shall show that he was prejudiced by such want, defect, or inaccuracy, and then only to the extent of such prejudice.

(c) If the notice is given or the knowledge obtained within ninety days, and if the employe or other beneficiary shall show that his failure to give prior notice was due to his mistake, inadvertence, ignorance of fact, or law, or inability, or to the fraud, misrepresentations, or deceit of another person, or to any other reasonable cause or excuse, then compensation may be allowed, and shall not be diminished unless and then to the extent only that the employer shall show that he was prejudiced by failure to receive such notice.

(d) Unless knowledge be obtained or notice given within ninety days of the injury, no compensation shall be allowed.

Sec. 17. The notice may be served personally upon the employer, or upon any agent of the employer upon whom a summons may be served in a civil action or upon any foreman or person having authority as a viceprincipal or by sending it through the mail to the employer at the last known residence or business place thereof within the State, and may be substantially in the following form:

"Notice to employer of personal injury received. You are hereby notified that a personal injury was received by... who was in your employ at

...

(place)
on or about the

(name)

at the job .. day of

19.., and that compensation will be claimed therefor

Sec. 18. (a) After an injury, the employe, if so requested by his employer, must submit himself for examination at some reasonable time to a physician selected by the employer and authorized to practice under the laws of the State.

(b) If the employe requests, he shall be entitled to have a physician of his own selection present at some reasonable time to participate in such examination.

(c) Except as provided herein in this act, there shall be no other disqualification or privilege preventing the testimony of a physician who actually makes an examination.

(d) Unless upon request by the employe as provided in paragraph "b." there has been a reasonable opportunity thereafter for such physician selected by the employe to participate in the examination in the presence of the physician selected by the employer, the physician selected by the employer shall not be permitted afterwards to give evidence of the condition of the employe in a dispute as to the injury.

Sec. 19. If the employe shall refuse examination by a physician selected by the employer, either with or without the presence of a physician of his own selection, he shall have no right to compensation during the period from such refusal until he or some one on his behalf notifies the employer that he is willing to have such examination.

Sec. 21. All settlements and releases made, in which the employe is given the full benefit of this act shall be binding upon all parties, except that no settlement or release in which the payments shall run longer than ninety days from the injury, and no lump-sum settlement whatever, shall be binding upon the employe or his beneficiaries, unless and until the same be approved by the Probate Court.

Sec. 22. The right of compensation granted by this act shall have the same preference against the assets of the employer as is allowed by law for a claim for unpaid wages for labor.

Sec. 23. Claims or payments due under this act shall not be assignable, and shall be exempt from all claims of creditors and from levy, execution, or attachment.

Sec. 24. In case any question arises as to the compensation payable under this act which cannot be settled by agreement, the workman and employer shall each select a disinterested person and they shall select a third disinterested person, such persons to be residents of the county in which the injury occurred, who shall constitute a Board of Arbitrators for the purpose of hearing and determining all such disputed questions of law or fact arising in regard to the application of this law in determining the compensation payable thereunder. In case either party shall refuse or neglect to appoint an arbitrator within ten days after request from the other party, the said judge of probate shall also appoint such arbitrator.

Sec. 25. The arbitrators so appointed shall thereupon notify in writing both parties which notice shall specify the time and place and the general nature of the matter to be investigated, sufficiently describing the same to enable the parties to prepare for hearing.

Sec. 26. The time for a hearing upon the merits of a claim for compensation shall not be less than ten days, and upon other matters not less than five days, after notice given, unless as to such other matters the Board shall shorten the time by order to show cause.

Sec. 27. No formal or written pleadings shall be required in the hearing of any controversy arising under this act.

Sec. 28. The Board shall not be bound by the usual common law or statutory rules of evidence or by any technical or formal rules of proceedure, other than as herein provided; but may make the investigation in such manner as in their judgment is best calculated to ascertain