Michigan Workers’ Disability Compensation Agency releases its 2019 Pay Lag Report and info on when you will receive you workers’ comp check.
When will I receive my workers’ comp check? It’s a common question for many of our clients who live paycheck-to-paycheck. Missing even 1 week of pay could mean financial disaster. How will they pay rent or the mortgage? What about putting food on the table for their family? Here are some items that disabled employees need to know about a workers’ comp check and what to do if it is late.
Michigan law requires employers to pay lost wages to employees hurt on-the-job. The amount equals 80% of their after-tax average weekly wage. This calculation should include overtime and discontinued fringe benefits. It continues for the entire length of disability and is paid weekly.
When will I receive my workers’ comp wage loss check?
In Michigan, in order to receive a workers’ comp wage loss check an employee must be disabled for at least 1 week before wage loss benefits are owed. A week is 7 consecutive days and includes weekends. Disability lasting 2 weeks or more will result in payment going back to the first missed workday.
Workers’ comp is supposed to provide regular income to disabled employees as a safety-net. Michigan law requires payments to begin on the 14th day. Disabled employees can ask to have their wage loss benefits direct deposited and this sometimes speeds up the process.
The 2019 Pay Lag Report shows when group funds, self-insureds, and insurance carriers start payment. The average is 17 days, but some insurance carriers wait 30 or more days to commence payment. This does not include those claims where a Notice of Dispute has been filed.
Checks are typically considered late when they are 30 days past due. Our experience shows that poor claims handling, unresponsive employers, and medical providers who don’t send records are the primary causes of late checks.
There is a $50 per day penalty if wage loss benefits are not paid within 30 days of becoming due. This penalty is subject to a maximum of $1,500. We recommend sending any required documentation by certified mail return receipt requested so there is proof it was submitted. Penalties do not apply when a Notice of Dispute has been filed.
It is a good idea to contact an attorney if your wage loss check is late. It is a red flag that workers’ comp benefits might be disputed. Watch out for claims adjusters who insist on getting an independent medical examination (IME) before starting payment. These are not fair assessments and it’s a sign the insurance company is looking to get out of paying. Sometimes late or missing checks are just an oversight or error.
When will i receive my workers’ comp settlement check?
Clients often ask us, “when will I receive my workers’ comp settlement check?” Settlement checks under workers’ comp are supposed to be paid after a 15 day appeal period. Our experience is that checks are typically mailed within a 7 to 10 days after expiration.
It is possible to waive the appeal period to speed up this process. Settlement checks must be sent via mail and cannot be direct deposited.
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.