How vacation and sick time is considered “wage continuation” and generally unrecoverable under Michigan workers’ comp law.
The issue of recoupment for vacation and sick time comes up frequently. Our clients always want to know if these payments can be recovered in their workers’ comp case.
It does not seem fair when a person hurt on-the-job must use his or her own accumulated time. Here is some information that you mind find useful.
Insurance companies get a credit for wage continuation that is paid by the employer. This happens when an employee still gets paid his or her wages despite not working. This usually results in a larger amount since workers’ comp only pays 80% of the after-tax average weekly wage.
Vacation pay can be coordinated in a similar way. Payment for vacation time while unable to work is considered wage continuation.
Sick pay is also considered wage continuation and can be coordinated with workers’ comp. This is permitted even if coming from a bank of unused time that has been accumulated over years.
Most employers actually require disabled employees to use vacation or sick time during the first week of missed time. Entitlement to workers’ comp does not begin until the eighth day of disability. If a person misses more than two weeks, workers’ comp should be paid from the beginning.
Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (855) 221-2667 for a free consultation today.
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