Michigan workers’ comp lawyer explains how to calculate your AWW and why it is so important to double check insurance company math.
Employees who are hurt on-the-job have legal rights. They are entitled to be paid for time off if it exceeds 7 days. The amount paid for Michigan workers’ comp wage loss benefits is going to be based upon their average weekly wage (AWW). Items like overtime, bonuses, discontinued fringe benefits, and even second jobs that cannot be done should be included. This is a part of the safety net that workers’ comp provides.
Employees should be paid 80% of their after-tax AWW. This is subject to a maximum of 90% of the Michigan AWW, which is $1,095 for 2023. The idea is to limit what people collect on workers’ comp and it is not always fair. It does not matter if they played football for the Detroit Lions and earned millions of dollars per year.
What is the average weekly wage in Michigan for workers’ comp?
According to Michigan workers’ comp, average weekly wage (AWW) is the highest 39 paid weeks out of 52 weeks before the workplace accident. Employees who are hurt on-the-job are entitled to wage loss benefits. The amount paid is based upon 80% of their after-tax AWW. Overtime, bonuses, discontinued fringe benefits and even second jobs should be included.
If you worked less than 39 weeks for this employer, just use the total number of weeks you have worked. The rest of the calculation should be the same. It can get complicated if there are partial weeks that must be included so it is best to get a free consultation with an attorney should any questions arise.
How to calculate average weekly wage for workers’ comp in Michigan?
In Michigan, to calculate you average weekly wage (AWW) for workers’ comp take the highest 39 paid weeks out of the 52 weeks before you were hurt and add them together. If you divide this number by 39, you will get your AWW. Be sure to include items like overtime, bonuses, discontinued fringe benefits, and second jobs that cannot be done anymore.
Use the AWW to figure out the comp rate in Michigan.
According to Michigan workers’ comp law, employees who are unable to work get 80% of their after-tax average weekly wage. This amount can be determined using tables published by the State of Michigan. You need to know tax filing status and number of dependents. Use the columns on the top and side to locate the appropriate weekly comp rate.
Watch out for common insurance company errors.
Insurance companies often make mistakes. They will estimate a comp rate using just your hourly rate. This is incorrect and could lead to hundreds of dollars per week in lost wage loss benefits. Make sure actual wage records from your employer are being utilized. Double-check the AWW yourself.
Don’t let the insurance company underpay you because of a simple math error. This can lead to hundreds of dollars per week in missing wage loss benefits. It can also impact the value of any settlement because the insurance company thinks it only has to pay a small amount.
Speak with an experienced Michigan workers’ comp lawyer who can review your claim and verify the correct average weekly wage is being used. There is no fee unless additional wage loss benefits or a settlement is obtained.
Need help with your claim? Call our attorneys now
If you are injured on the job in Michigan and need help with your workers’ comp claim, call now speak with an experienced attorney, or fill out our contact form for a free consultation. There is absolutely no cost or obligation. We’re 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 workers’ comp 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.