Disabled employees can expect 80% of their after-tax average weekly wage subject to a state maximum.
We understand the stress and worry that comes along with a workers’ comp claim. Getting hurt on-the-job can result in extreme financial distress. It is even worse when the disabled employee is the primary breadwinner for a family. Workers’ comp is supposed to help people during this difficult time. A common question we get from potential clients is what percentage does workers’ comp pay in Michigan? We tell them that a disabled employee should receive 80% of their after-tax average weekly wage.
Payments under workers’ comp should continue for the entire time a person is off work. It is calculated based upon the highest 39 paid weeks out of the 52 weeks before the workplace accident occurred. Money for overtime, discontinued fringe benefits, and even second jobs should be included in the average weekly wage calculation. According to Michigan law, the percentage workers’ comp pays 80% of the after-tax average weekly wage.
Watch out for insurance companies who just estimate a weekly rate instead of getting actual wage records from the employer. We have seen people get hundreds of dollars less each week just because some adjuster was lazy. There is a one year back rule, so even if the problem gets fixed, a person could be out a significant amount of money.
What percentage does workers’ comp pay in Michigan?
According to Michigan law, the percentage workers’ comp pays to disabled employees should be 80% of their after-tax average weekly wage. This calculation includes money for overtime, discontinued fringe benefits, and even second jobs. Tax filing status and number of dependents impacts the weekly payment. We tell our clients to expect approximately 60% of their gross pay.
In Michigan, the percentage workers’ comp pays is capped at 90% of the state average weekly wage, regardless of gross income. This limit keeps disabled employees from earning more than what most people get while working. It does not matter if a person is an orthopedic surgeon or quarterback for the Detroit Lions. It is not exactly a fair system for high wage earners who take a significant cut in pay under workers’ comp.
The percentage Michigan workers’ comp pays could be reduced below 80% if the insurance company uses something called post-injury wage earning capacity (PIWEC). This happens when an insurance company says a person can find another job and uses “phantom wages” to cut what is paid. We recommend speaking with an experienced workers’ comp lawyer should this occur.
There are no minimum payments except for specific loss and death claims. These are paid at a minimum of 50% of the state average weekly wage for the year of injury.
It is critical to make sure the correct percentage is being paid on a weekly basis. Settlement is based upon what the insurance company thinks it must pay and if the numbers are wrong, it could impact value. Don’t leave money on the table! Call an experienced workers’ comp lawyer and get a free consultation today.
Injured on the job in Michigan? Contact our lawyers now
If you were injured while on the job in Michigan and have questions about your workers’ comp claim and the percentage of money they will pay you for your 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) 316-8033 for a free consultation today.