Michigan workers comp lawyer discusses the maximum rate for 2014 and why high wage earners feel the pinch.
We reported a couple of weeks ago about the 2014 benefit tables being released. Now the maximum rate for 2014 has been announced.
The 2014 maximum weekly compensation rate is $805.00 based on a state average weekly wage of $893.44. This equals $41,860.00 per year in total wage loss benefits.
High wage earners feel the pinch
Wage loss benefits are supposed to equal 80% of the after-tax average weekly wage. However, this amount is capped at 90% of the state average weekly wage. The idea is to limit workers comp payments to what most employees in Michigan earn.
This means high wage earners are stuck with a maximum of $805.00 per week regardless of their average weekly wage. This can be a tremendous burden on a family who was relying upon on a much higher income.
How the weekly rate effects settlement
The amount of a settlement is almost always based upon future benefits. This includes payments for medical and lost wages.
Most insurance companies compute their “exposure” by multiplying the weekly compensation rate by 52. This gives a yearly amount for wage loss benefits. Higher weekly checks means a larger settlement.
Make sure the math is correct
We frequently see errors with the average weekly wage calculation. Employers do not always provide the correct wage information. This results in insurance companies paying benefits at the wrong rate.
Make sure the insurance company is using the highest 39 paid weeks in the 52 before you got hurt. Overtime, bonuses, and premium pay should be included. Even fringe benefits that have been discontinued can be used to increase your average weekly wage.
Let us help protect your legal rights and make sure you are receiving the correct weekly compensation rate. There is no charge to review this information and you only pay a fee if we recover additional benefits. Call (855) 221-2667 for a free consultation today!
– 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 401(K) 2013.