Michigan lawyer discusses side jobs and differential wage loss benefits under workers’ comp.
We always tell our clients to work if physically able. Workers’ comp should continue paying medical bills and differential wage loss benefits. Settlement is also a good option before starting a new job. Here is why you can drive for Lyft while on workers’ comp but must understand the consequences.
Workers’ comp pays wage loss benefits to employees hurt on-the-job. The amount is 80% of an employee’s after-tax average weekly wage. This is calculated using the highest 39 paid weeks during the 52 weeks before getting hurt. Overtime, discontinued fringe benefits, and even second jobs should be included in the average weekly wage calculation. A good rule of thumb is 60% of gross wages should be paid.
Employees who are claiming wage loss benefits under workers’ comp must perform a job search. The search should not be limited to past work but any job an employee might otherwise be qualified or trained to perform. This is a requirement under Michigan law. It does not matter if a person is still technically employed or has been found disabled by the Social Security Administration.
A job search can also be used as evidence that no other employment is available or pays maximum wages. It is important to get a free consultation with a workers’ comp lawyer if the issue of job search has been raised by the insurance company.
Drive For Lyft While on Workers’ Comp: How It Works
If a person starts to drive for Lyft while on workers’ comp or finds another lesser paying job, they could still be owed differential wage loss benefits under workers’ comp. This is calculated based upon 80% of the difference between the person’s after-tax average weekly wage before the injury and the after-tax weekly wage the person earns now.
Here is an example of how it works: Bob was hurt on-the-job and was earning an average of $800 per week. He is entitled to 80% of the after-tax average weekly wage under workers’ comp. Based upon a tax filing status of married/joint and two dependents, his weekly comp rate is $520.22. Bob starts to drive for Lyft while on workers’ comp and earns $400 per week. 80% of the after-tax value of $400 per week is $282.53. He should still get differential wage loss benefits equal to $237.69.
Watch out because sometimes insurance companies penalize individuals who drive for Lyft. They assume a person has the ability to do other jobs and will automatically stop payment of workers’ comp benefits. It will also impact the value of any settlement since the weekly rate is reduced.
Post-Injury Wage Earning Capacity
Insurance companies can also use post-injury wage earning capacity (PIWEC) to say a person can earn other wages. These “phantom wages” can be used as a credit regardless of whether a new job is obtained. A vocational expert hired by the insurance company will testify about transferable skills and perform a labor market survey.
Watch out because PIWEC is not always a fair assessment, and it is ripe for insurance company abuse. Make sure to contact an experienced workers’ comp lawyer if you start driving for Lyft while on workers’ comp and do not get differential wage loss benefits.
We also recommend that a person explore settlement options before starting any new job. This is especially true if it is a side hustle like Lyft. Insurance companies follow people, and it is possible to get caught on surveillance. Do not risk a workers’ comp settlement over a job that has little future potential.
Injured on the job in Michigan and wondering if you can drive for Lyft while on workers’ comp? Call our attorneys now for a free consultation!
If you or a loved one was injured on the job in Michigan and are on workers’ comp and you are wondering if you can drive for Lyft, call now (855) 221-2667 or fill out our contact form for a free consultation with an experienced workers’ comp lawyer. There is absolutely no cost or obligation. We’re here for you.
For more than 40 years, our lawyers have been helping people like you who have suffered from on the job injuries in Michigan. We understand the physical, emotional, and psychological hardships you are experiencing from your accident. We also have the skill, experience, and know-how to protect you and get you the best possible payout amount for your case.
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.
Remember, every claim is different and must be negotiated on its own merits. Do not accept any payout amount without fully understanding your legal rights.
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 (855) 221-2667 for a free consultation today.
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