What do all these strange numbers mean and how to calculate the weekly comp rate?
We published a blog yesterday discussing fringe benefits and the statewide average weekly wage. How some claimants do not get extra money despite losing their health insurance or vacation time. Fringe benefits cannot be used to increase the weekly comp rate beyond 2/3 the statewide average weekly age.
Calculating the weekly comp rate seems easy enough. It is supposed to be 80% of a persons’ after-tax average weekly wage. This is based upon the highest 39 paid weeks in the last 52 weeks before injury.
We are fond of saying math errors happen and they are never in your favor. Disabled employees often end up getting less than is required under Michigan law. Here are some key numbers to understand.
Statewide Average Weekly Wage (SAWW)
The statewide average weekly wage is $999.31 for 2018. Wage loss benefits are going to be limited by this amount regardless of how much a person earned at work.
90% of SAWW (Maximum)
Lost wages are capped at 90% of the SAWW regardless of income. The maximum weekly comp rate is $900.00. It does not matter if a person plays for the Detroit Lions or is a general laborer.
2/3 of SAWW
Fringe benefits cannot be included if the weekly comp rate exceeds 2/3 of SAWW. This amount is $666.21.
50% of SAWW (Minimum Benefit for Death Cases)
The minimum weekly comp rate when a death occurs is $499.66.
25% of SAWW (Minimum Benefit for Specific Loss and T&P)
Individuals with a specific loss or who qualify for T&P are entitled to a minimum of $249.83.
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 (844) 201-9497 for a free consultation today.
Photo courtesy of Creative Commons, by AJC1.Tags: Michigan workers comp lawyers