Workers’ Disability Compensation Agency (WDCA) publishes weekly rates for 2023 and teaches how to double check insurance company math.
Michigan workers’ compensation rates 2023 have now been published. The maximum weekly comp rate for 2023 is $1,095.00 ($56,940 annually). This is based upon 90% of the state average weekly wage, which is $1,216.18.
The maximum is to limit disabled employees to what most people in Michigan are earning. It does not matter how much a disabled employee was earning before getting hurt. Unfortunately, this maximum punishes high wage earners who are stuck with this arbitrary cap. There are no minimum payments except for specific loss and death claims.
Watch out for insurance companies who simply estimate the weekly rate. Here is how to double check insurance company math to make sure the correct Michigan workers’ compensation rates for 2023 are being used. Our experience shows that insurance companies make mistakes, and they are never in a disabled employee’s favor.
Step 1: Calculate the average weekly wage (AWW)
Calculate the AWW using pay stubs from the 52 weeks before getting hurt. Make sure to include overtime in the gross amount. The value of discontinued fringe benefits can also be included under specific circumstances. Even wages from second jobs that cannot be performed any longer can be used.
We recommend organizing 52 weeks of pay stubs in order from highest amount to lowest amount. Pick the highest 39 pay stubs and add these weekly amounts together. Divide this total amount by 39 to calculate the AWW. Use all the paystubs if worked 39 weeks or less for this employer.
Step 2: Use benefit table to find weekly Michigan workers’ compensation rates 2023
Disabled employees should be paid 80% of their after-tax average weekly wage. Tables published by the WDCA show the Michigan workers’ compensation rates 2023. The amount paid is based upon AWW, tax filing status, and number of dependents. Disabled employees can also make use of an online calculator to double-check calculations. Wage loss benefits under workers’ compensation are income tax free.
Step 3: Resolve any math errors with the insurance company
Math errors occur when the insurance company uses the Michigan workers’ compensation rates for 2023 but the employer has not provided actual wage records. Do not let the insurance company estimate the weekly rate by just using hourly pay. Our experience shows that disabled employees are leaving money on the table when this happens. It could also impact settlement value if the weekly rate is not corrected prior to the start of negotiations. Give pay stubs directly to the insurance company if the employer refuses to cooperate. Speak with an experienced workers’ compensation lawyer if weekly checks are still too low.
It’s important to note that when insurance companies are calculating Michigan workers’ compensation rates for 2023, Michigan law permits them to pay less based upon post-injury wage earning capacity (PIWEC). They use “phantom wages” to reduce the weekly amount paid regardless of what was actually earned. It is critical to speak with an experienced workers’ compensation lawyer if this occurs. Vocational assessments by insurance companies are not fair and can be challenged in court. A good-faith job search can also be used to show that no employer will accept current restrictions and full benefits should be paid.
Injured while on-the-job in Michigan? Contact our lawyers now
If you were injured while on the job in Michigan and you have questions about the Michigan workers’ compensation rates for 2023 or any other questions regarding your workers’ comp claim, call now or fill out our contact form for a free consultation. There is absolutely no cost or obligation. Our attorneys are here for you.
Our attorneys have been exclusively helping injured workers in Michigan for more than 35 years. Our attorneys can help you better understand Michigan work injury laws and what happens after someone has been hurt on the job. To see what our own clients have to say about the caring, compassion, and communication they received from us, you can read in their own words about their experience here on our testimonials page from clients we have helped.
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.