Lawyer explains about insurance company penalties if your workers’ comp check is late in Michigan.
Many of our clients live paycheck-to-paycheck. It can be a financial disaster if workers’ comp payments are delayed. This leads to a frequently asked question: What if my workers’ comp check is late? Here is some advice we give about protecting your legal rights in Michigan.
Workman’s comp is supposed to be a safety net for employees hurt on-the-job. It covers all medical bills and a percentage of lost wages. The amount paid for lost wages should equal 80% of an employee’s after-tax average weekly wage. This is based upon the highest 39 paid weeks out of 52 before the workplace accident occurred. Wage loss payments continue for the entire length of disability.
Wage loss benefits start on the 8th day of disability. This includes time for weekends and holidays. The first payment should be received approximately 7-10 days after entitlement begins. Unfortunately, it can take insurance companies time to process claims. Most claims do not get paid until approximately 15-30 days later.
Our experience shows the length of time greatly increases if the employer refuses to cooperate. We have seen situations where the employer will not acknowledge a workplace accident occurred or provide the necessary documentation to calculate workers’ comp benefits. They just do not care if a Michigan employee’s workers’ comp check is late.
What if my workers’ comp check is late in Michigan?
In Michigan, if your workers’ comp check is late 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 total. It does not apply if the claim has been disputed.
Insurance companies hate paying penalties and a certified letter usually gets their attention. Make sure to send the certified letter “return receipt requested” so there is proof of mailing. This is required step if a person wants to get a penalty.
A penalty may also apply to medical bills that are not paid within 30 days after the insurance company receives notice of nonpayment by certified mail. This penalty is limited to $50 or the amount of the bill if it is less.
Penalties only apply to claims that are not disputed. Even frivolous defenses allow the insurance company to escape paying. Watch out for insurance companies who file a Notice of Dispute saying “pending investigation” or other nonsense. These bogus defenses should be challenged in court. Most insurance companies deny penalties even when they are clearly in the wrong.
We recommend that you contact an experienced lawyer if your workers’ comp check is late in Michigan and benefits are not promptly paid. Missing or delayed payments are often a warning sign that benefits are in jeopardy.
One of the “red flags” that we tell people to watch out for is when payments are delayed or missing. Insurance companies typically suspend benefits if they believe an employee is no longer disabled. The independent medical examination (IME) will be scheduled, and workers’ comp benefits will be put on hold. The disabled employee is usually the last to know and has the burden of challenging the dispute.
In Michigan, if your workers’ comp check is late it is best to call an experienced attorney for a free telephone consultation. There is no fee unless additional benefits or a settlement is obtained. Sometimes just the threat of an attorney gets the insurance company moving.
Injured on the job? Call our attorneys now for a free consultation!
If you are collecting work injury benefits after being injured on the job in Michigan and your workers’ comp checks are late or you have missing payments, call now to 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 40 years. Our attorneys can help you better understand work 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 40 years. Call (844) 316-8033 for a free consultation today.
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