Michigan work injury lawyer explains the average weekly wage calculation and answers the frequently asked question: Why is my workers’ comp check so low?
We get many confused telephone calls and emails regarding wage loss benefits. These payments are a disabled employee’s safety net when they get hurt on-the-job. Many people live paycheck-to-paycheck and cannot afford to lose any income. We understand these challenges and want to help you understand your legal rights. Below are answers to a frequently asked question: Why is my workers' comp check so low?
Why is my workers’ comp check so low?
Michigan workman’s compensation is designed to pay wage loss benefits to people who cannot work. The amount paid depends upon income before getting hurt. Disabled employees can generally expect to receive 80% of their after-tax average weekly wage, subject to a state-wide maximum. This is calculated by averaging the highest 39 paid weeks out of the 52 paid weeks before the work accident. Why is my workers’ comp check so low? Because the insurance company made an error or is playing games.
Wage loss benefit calculation and incorrect math
Individuals on workers’ comp in Michigan should get 80% of their after-tax average weekly wage. This is calculated by adding up the highest 39 paid weeks out of the last 52 weeks before the workplace injury occurred. Overtime, premium pay, bonuses, discontinued fringe benefits, and even second jobs that cannot be worked anymore should be included in the calculation.
Our attorneys find that one of the reasons your Michigan workers’ comp check is low is because the insurance company probably estimated the math based upon hourly rate and a standard 40-hour workweek. This is incorrect and robs people of money. The claims adjuster should be using actual wage records from the employer. Information about discontinued fringe benefits should have also been disclosed. We have seen clients get hundreds of dollars less each week because the calculation was done wrong.
It is also up to the disabled employee to provide wage records from any second job that can no longer be performed. Make sure to obtain these wage records and provide them to the insurance company as soon as possible. Tax filing status and number of dependents also play a role in the wage loss benefit calculation. Make sure to provide this information to the insurance company.
Post-injury wage earning capacity
Another reason your Michigan workers’ comp check might be low is because of your post-injury wage earning capacity (PIWEC). This is when the insurance company says you can find a new job despite being disabled from your current position. Biased vocational assessments are used as justification to reduce wage loss benefits. They use transferable skills and a labor market survey to argue that other jobs are available.
Our experience shows that PIWEC is a flawed system. Insurance companies abuse the process to reduce wage loss benefits causing your payment to be artificially low. We had one client see his weekly checks get slashed to just $19 per week using a job he was not even qualified to perform.
It is important to challenge any PIWEC assessment in court. Don't let the insurance company play games with your wage loss benefits. A magistrate will ultimately decide if work is available within qualifications and training. It is also important to conduct a good-faith job search as this can be used as evidence that no employer will hire you because of restrictions. Make sure to contact an experienced workers' comp lawyer if weekly checks are unfairly reduced or stopped.
Need help with your claim? Contact us today!
If you were injured on the job in Michigan and you are wondering why your workers' comp check is low and need help with your claim, call now at (855) 221-2667 or fill out our contact form for a free consultation with an experienced lawyer. There is absolutely no cost or obligation. We're here to help.
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 work injury 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 law firm has consistently secured the largest settlements in the state and is the best choice for your case. We never charge 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.
Related information:
Can I Return To Work After A Workers’ Comp Settlement?
