Michigan workers comp lawyer explains the maximum weekly rate and how to calculate your wage loss benefits after an injury at work.
The most confusing part of a workers comp claim is determining your weekly rate. Many people assume that they are entitled to their full salary if they cannot work because of injury. This is incorrect. Here is some information about lost wages that you need to know about.
You are generally entitled to 80% of your after-tax average weekly wage. This comes out to be about 60% of your gross pay. You should receive these wage loss benefits for as long as you are disabled from work.
Your wage loss benefits will be limited to a maximum of 90% of the state average weekly wage. This amount is $775.00 per week for 2012. This can be devastating for high wage earners who are faced with a substantial cut in income.
How to calculate your workers comp rate in Michigan
The first step to determining your workers comp rate is computing your “average weekly wage.” Take the highest 39 paid weeks in the 52 weeks prior to your injury and add them together. Divide this total amount by 39 to find your average weekly wage. You should include overtime and premium pay in this calculation. Under some circumstances, the value of discontinued fringe benefits can be used to increase your average weekly wage.
Once you have found your average weekly wage, you can use tables provided by the State of Michigan to determine your weekly workers comp rate. You must know your tax filing status and number of dependents to get the correct amount. Wage loss benefits under workers comp are income tax free.
Recent changes to the Michigan workers comp law
Because of recent changes to the workers comp law, your wage loss benefits can be reduced by a hypothetical wage earning capacity. If your employer or its insurance company believe that you can perform another job, they can take a credit for those wages whether or not actually earned.
This is a major change in the law and is ripe for insurance company abuse. Call an experienced workers comp attorney immediately if you are scheduled for a vocational assessment or Stokes examination. This is usually the first sign that your workers comp benefits will be cut.
Get help from an experienced workers comp Michigan lawyer
Insurance companies always make mistakes and they are never in your favor. Even if you are receiving workers comp benefits on a voluntary basis, it is a good idea to make sure that you are receiving the correct amount. An experienced workers comp lawyer can help you protect your legal rights.
Call (855) 221-2667 for a free consultation with one of our experienced workers comp lawyers. We will make sure that your legal rights are protected and that you receive the most compensation under the law. You will never pay a fee unless workers comp benefits are recovered.
– Alex Berman is the founder of Michigan Workers Comp Lawyers. Hes been representing injured and disabled workers exclusively for more than 35 years. Alex has helped countless people obtain workers comp benefits and never charges a fee to evaluate a case.
– Photo courtesy of Creative Commons, by www.seniorliving.org.