How much should I get from a workers’ comp settlement in Michigan?

What benefits go into a workers’ comp settlement and how to know if you are getting a fair deal?

We recently blogged about an individual who was scammed out of $300 dollars. He was promised money under workers’ comp if he sent a smaller cash payment. This was obviously a scam as he did not have a pending workers’ comp claim and sending money is never required.

Michigan law does allow people on workers’ comp to get a lump sum cash payment. Settlement allows them freedom to do medical treatment and vocational rehabilitation on their own terms. It can be a very good deal for someone who does not want medical treatment and/or is planning on returning to work elsewhere. Here is what goes into a workers’ comp settlement.

Lost Wages

Individuals who are disabled should receive 80% of their after-tax average weekly wage. This is based upon the highest 39 paid weeks before getting hurt on-the-job. Settlement is based upon a multiple of weekly benefits and years. Insurance companies rarely pay more than five years of lost wages in a settlement.


All reasonable and necessary medical treatment should be paid under workers’ comp. Individuals can trade the value of medical treatment for a lump sum cash payment. The amount depends upon how much medical treatment is anticipated. Disputes about future medical needs are common.

Vocational Rehabilitation

Workers’ comp law provides vocational rehabilitation benefits. This can be in the form of tuition reimbursement and/or trade school. Disputes about vocational programs are common. Insurance companies rarely pay unless their vocational counselor agrees with a specific plan.

Fees & Costs

Attorney fees are 10% of the total settlement if workers’ comp benefits are paid without dispute. It rises to 15% of the first $25,000 and 10% on the remainder if an Application for Hearing or Mediation has been filed. Costs will be reimbursed out of any settlement.

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.

Related information:

How long will this case take? Two weeks!

Photo courtesy of Creative Commons, by thethreesisters.

Tags: ,
Injured On The Job: A Guide to Michigan Workers Compensation Law Injured On
The Job
A Guide to Michigan Workers Compensation Law Free Book
Free Consultation
  • This field is for validation purposes and should be left unchanged.