Michigan lawyer explains about differential benefits under employee injury insurance when a person starts a new job.
We take great pride in helping people get back on their feet and return to work. It can take time for a person to find a new job within his or her restrictions. Workplace injury benefits should cover lost wages during the vocational rehabilitation process. But how will a new job impact the amount of lost wages paid? Here is what happens if you drive for Uber or take another gig job while on workers’ comp in Michigan.
Workers’ comp pays benefits to employees hurt on-the-job. The amount equals 80% of a person’s after-tax average weekly wage. This is calculated using the highest 39 paid weeks during the 52 weeks before injury. Overtime, discontinued fringe benefits, and even second jobs that cannot be performed anymore should be included in the calculation.
In Michigan, if a person starts to drive for Uber or finds another lesser paying job, workers’ comp still owes differential wage loss benefits. This is calculated based upon 80% of the difference between the person’s after-tax weekly wage before the injury and the after-tax weekly wage the person earns now.
Required job search
Individuals who are claiming lost wages must perform a good-faith job search. Our clients moan and groan when they hear this advice, but it is required under legislative reforms passed in 2011. A job search should not be limited to just past work but any position someone might otherwise be qualified and trained to perform. It does not matter if a person is still technically employed or has been found disabled by the Social Security Administration.
Does driving for Uber count as a good faith job search under workers' comp law in Michigan?
In Michigan, driving for Uber can count as part of a good-faith job search while receiving workers’ comp, but it depends on your situation. State rules require individuals claiming wage-loss benefits to show they are making reasonable efforts to return to work or find suitable employment. A job search isn’t limited to your past jobs—it can include positions you are qualified or trained to do, including gig work like working for a rideshare company.
However, to count as a good-faith job search, you must be actively documenting your efforts, available to work within your restrictions, and able to show that working for a rideshare company is consistent with your medical limitations. It’s also important to report your income accurately, as it can affect wage-loss benefits. Consulting an attorney can help ensure your rideshare work aligns with our state’s job-search requirements.
Post-injury wage earning capacity
Insurance companies get a credit for “phantom wages” based upon post-injury wage earning capacity (PIWEC). It does not matter if the person has a job or not. A vocational counselor will testify about transferable skills and perform a labor market survey. Watch out because this is not always a fair assessment and is ripe for abuse. A good-faith job search can be used as evidence that no other employment is available. Make sure to contact an experienced workplace injury lawyer if weekly benefits have been unfairly reduced.
Driving for Uber while on workers' comp in Michigan: how it works
In Michigan, you can drive for Uber while on workers' comp but it will reduce the amount of wage loss benefits owed and have an impact on the overall value of any settlement. Insurance companies view driving for a rideshare company as a negative. They will argue that a person is not disabled and can find another job if they put in more effort. We recommend speaking with an experienced workplace injury lawyer before starting any new job.
Were you injured on the job in Michigan and have questions about your workers' comp claim after driving for Uber? Call our work injury attorneys now!
If you were injured on the job in Michigan and started driving for Uber or working at a lesser paying job and you have questions about your workers' comp claim and differential wage loss, call now (855) 221-2667 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 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 40 years. Call (855) 221-2667 for a free consultation today.
Related information:
What Is Workers’ Compensation And How Does It Work In Michigan?
