Michigan lawyer explains the average weekly wage and how workers’ compensation pays you.
Getting hurt on-the-job can turn a person’s life upside down. This is especially true for those families living paycheck-to-paycheck. Workers’ comp is a safety net and supposed to help disabled employees pay the bills. It does not matter who was at fault for the work accident. Guaranteed benefits include medical treatment and lost wages.
How does workers’ comp pay you?
In Michigan, workers’ comp should pay disabled employees 80% of their after-tax average weekly wage subject to a state-wide maximum. This is based upon the highest 39 paid weeks during the 52 weeks before getting hurt. Overtime, discontinued fringe benefits, and even second jobs should be included. Money paid is tax free.
Payments should come in the form of weekly checks in the mail. It is possible to arrange for direct deposit, but written consent must be given. Funds will then be directly deposited in a financial institution or put on a debit card.
Issues that might interfere with payment
Watch out for insurance companies that simply estimate your Michigan workers' comp weekly rate - this mistake can result in them paying you significantly less than you are entitled to receive. We have seen disabled employees get hundreds of dollars less per week than what is required under Michigan law. Actual wage records from the employer should be used.
Insurance companies also use vocational experts to say a disabled employee has a post-injury wage earning capacity (PIWEC) and reduce weekly checks. This is based upon “phantom wages” from jobs that might not even exist. It is important to speak with a workers’ comp lawyer if this should occur.
Insurance companies also look for excuses to cut off payments. This is usually done with an independent medical examination (IME). Make sure to challenge any biased medical reports.
How long does workers’ comp have to pay you in Michigan?
Michigan is considered a “wage loss” state. This means workers’ comp will pay you weekly checks for as long as a person is disabled. A good-faith job search is required to qualify for continuing wage loss benefits.
Weekly checks can be reduced by 5% each year starting at age 65. This continues until age 75 when a 50% reduction has been reached. In the alternative, 50% of a person’s Social Security retirement benefit can be used as an offset.
Insurance companies usually select whatever method results in the least amount of benefits paid. Watch out for insurance companies who attempt to use both the age 65 reduction and the monthly Social Security offset. Only 1 method can be used at a time.
It is important to consult with an experienced workers’ comp lawyer whenever a question arises regarding payment. Insurance companies make mistakes and they are never in your favor. Attorney fees are only paid if additional benefits or a settlement is obtained.
Injured on the job? Call our attorneys now for a free consultation!
If you or a loved one was injured on the job in Michigan and you need help with your workers' comp claim and are wondering how they will pay you, 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 work-related injuries in our state. 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 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.
Related information:
Michigan Employer’s Basic Report Of Injury: Here’s What To Know