Higher minimum wage has positive impact on workers’ compensation benefits and why all employees need to stick together.
Michigan workers got a bigger paycheck starting on March 29, 2019 when the minimum wage increased to $9.45 per hour. This is the first of several scheduled raises until 2030 when it hits $12.05 per hour.
The minimum wage increase is the culmination of a proposed 2018 ballot imitative and subsequent legislative meddling. Original plans called for a $12 minimum wage by 2022. Many people feel that $15 per hour is the bare minimum that should be paid. We are strong advocates for a living wage and hope this issue is revisited again soon.
A higher minimum wage also has a positive impact on workers’ compensation benefits. Employees disabled from working are entitled to receive 80% of their after-tax average weekly wage. This is usually around 60% of gross pay. Surviving on minimum wage is hard enough without this automatic reduction. Every dollar helps!
Employees who earn more than minimum wage could also be impacted. Michigan law caps the amount paid under workers’ compensation to 90% of the state-wide average weekly wage. High wage earners get stuck with an arbitrary cap regardless of how much they are losing. A higher minimum wage brings the state-wide cap up for everyone. This is mathematical proof that all Michigan employees need to stick together!
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.