Part 2 of 3: Why wage loss benefits get disputed

Insurance companies dispute wage loss benefits when an employee does not perform a good-faith job search.

Yesterday’s blog post was about games played by employers and insurance companies to dispute payment of wage loss benefits. Part 2 of this series involves the good-faith job search.

Workers’ compensation is supposed to pay 80% of the after-tax value of an employee’s average weekly wage. These weekly checks keep the rent paid and food on the table.

Here is what happens when the insurance company thinks a person is only partially disabled and is not looking for alternate employment.

Job Search

Michigan law was changed in 2011 and now requires employees to perform a good-faith job search while they are receiving wage loss benefits. It does not matter if they are still employed or receiving other disability benefits.

Insurance companies can even reduce the weekly comp rate based upon “wage earning capacity.” This is based upon an employee’s hypothetical ability to get hired in a new position. It does not matter whether the job is offered.

It is very important to challenge a dispute based upon job search. This can ultimately result in a much larger settlement down the road.

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) 316-8033 for a free consultation today.

Related information:

PIWEC Calculation

Photo courtesy of Creative Commons, by photologue_np.

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