Disability Compensation Workers' disability compensation is an employee benefit that has been available to Michigan workers since 1912. Compensation is provided for employees who can demonstrate their disability or death is as a result of a work-related injury or disease. Benefits are paid by the employers (either directly or through their insurance company). These benefits are separate from unemployment compensation, hospital, health or accident insurance. The Department of Labor & Economic Growth, Workers' Compensation Agency provides oversight for workers' disability compensation programs.