Workers’ comp lawyer gives advice about workers’ compensation death benefits in Michigan and eligible dependents when someone dies at work
After someone dies from a work-related accident, family members will often find themselves struggling to keep up with the bills, or even facing bankruptcy and foreclosure. Below are answers to common questions about workers’ compensation death benefits in Michigan (aka survivors benefits).
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Does workers’ comp cover death in Michigan?
In Michigan, workers’ comp covers death on the job and qualifying dependents can receive up to 500 weeks of wage loss benefits from workers’ compensation. This is based upon the after-tax average weekly wage of the deceased employee. A $6,000 burial expense is also available.
What benefits does workers’ compensation pay for a death in Michigan?
In Michigan, workers’ compensation death benefits (aka survivor benefits) are paid to eligible dependents when someone dies in a work-related accident. The amount payable is generally 500 weeks of work comp benefits at the employee’s compensation rate. This is your exclusive remedy against the employer.
Michigan workers’ comp is not always a fair system and the value of these benefits is small compared to the pain of losing a loved one.
Loss of consortium and other damages, like pain and suffering, are not available.
Who can collect after someone dies in a work-related accident in Michigan?
In Michigan, workers’ compensation death benefits (aka survivor benefits) are paid eligible dependents after someone dies in a work-related accident. There must be at least one dependent to qualify for survivor benefits. Dependency is a complicated legal issue and you cannot just rely on common sense. Multiple dependents must share in any recovery.
A spouse must prove that he or she was dependent on the deceased worker to receive workers’ comp benefits. A spouse could be found to be wholly or partially dependent. This determination can be very complicated as several factors must be considered. Some factors include whether the spouse is receiving income from another source and how much the deceased worker actually contributed to the surviving spouse. If the spouse is found to be partially dependent, he or she will still receive 500 weeks of compensation but at a reduced rate.
If a child under the age of 16 dies in a work-related accident they are wholly dependent and entitled to 500 weeks of compensation. A child over the age of 16 may have to prove factual dependence. Children over the age of 16 may be considered wholly dependent and entitled to 500 weeks of compensation if they are physically or mentally incapacitated from earning and living with the parent if they die in a work-related accident. After 500 weeks of compensation, a child may be entitled to continuing benefits until age 21 under certain circumstances.
Are workers’ compensation death benefits in Michigan capped?
In Michigan, workers’ compensation death benefits (aka survivors loss benefits) are subject to a specific maximum. The highest compensation rate allowed in 2012 was $775 per week.
No worker is allowed to receive compensation above 90 percent of the state average weekly wage. This can be extremely difficult for a family who lost a high wage earner. The compensation rate is fixed at the time of injury.
What is the Michigan work comp rate for survivors loss?
You can calculate the compensation rate by using the employee’s average weekly wage. Take the highest 39 paid weeks in the last 52 and divide by 39. If an employee worked less than 39 weeks, divide the total amount paid by the total weeks worked. Include overtime and any premium pay in the weekly amounts.
The amount of wage loss benefits that a survivor can receive will be 80 percent of the after-tax average weekly wage. In general, this amount is usually about 60 percent of the employee’s gross income. These benefits are income tax free and should be paid on a weekly basis. You can also negotiate a settlement and get these benefits paid as a lump sum.
What if there are no dependents?
If there are no dependents, workers’ comp only pays $6,000 for a burial allowance. However, the estate of a deceased worker could have a claim for benefits that should have been paid before they died.
Are workers’ compensation death benefits taxable in Michigan?
In Michigan, workers’ compensation death benefits are income tax free.
How do I know if I’m receiving the correct amount of survivors benefits?
The best way to make sure you’re receiving the correct amount of survivors benefits is to speak with an experienced work comp lawyer. Insurance companies frequently make mistakes — and they are never in your favor.
We recently represented a woman who was paid at the wrong weekly rate and was receiving substantially less survivors benefits than what the law required. We were able to have her survivors benefits increased by sending a letter explaining the error.
Did you lose a loved one in a workplace accident? Call our lawyers now!
If you lost a loved one in a workplace in Michigan, call now to speak with an experienced attorney, or fill out our contact form for a free consultation. There is absolutely no cost or obligation. We’re here for you.
Our attorneys have been exclusively helping injured workers in Michigan for more than 40 years. Our attorneys can help you better understand Michigan laws and what happens after someone has been hurt or loses their life on the job. To see what our own clients have to say about the caring, compassion, and communication they received from us, you can read in their own words about their experience here on our testimonials page from clients we have helped.