Can you support a family on $107.30 per week?

Call now for a free consultation
Available 24/7

Injured? It’s Time to Get Some Answers

Don’t let the insurance adjuster push you around. Request your free consultation today.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.
Get Help From our Michigan Workers’ Comp Lawyers Today
You’re not alone. Our Michigan workers’ comp lawyers have been called the best in the state, and we pride ourselves on providing you with care, trust, and responsiveness.

How to calculate wage loss benefits when the insurance company says you can find work somewhere else.

2247520563_22ec130817_mOur biggest complaint about legislative reforms passed in 2011 involve the controversial decision to allow insurance companies a credit based upon “wage earning capacity.” It does not matter whether the injured employee is actually working or can even find a new job.

These “phantom wages” are then used to offset workers’ comp benefits. It’s a horrible change that is causing real financial hardship for Michigan families. Here is an example of how the math works.

Rick S. is a machine operator who suffers a back injury when lifting a 100 pound metal part at work. He normally earns $14.00 per hour and has an average weekly wage of $560.00. His employer does not offer light duty and refuses to accommodate his 10 pound lifting restriction. He is married with 1 child and the sole wage earner.

Rick S. is supposed to receive 80% of his after-tax average weekly wage. This amount equals $368.10 per week. Not exactly a windfall for a person who cannot do his job because of a serious workplace injury. He cannot sue for pain and suffering because workers’ comp is the exclusive remedy.

The insurance company refuses to pay full weekly benefits because their vocational expert says he can work as a cashier at McDonalds making $8.15 per hour, minimum wage. Rick S. is only given 80% of the difference between his after-tax average weekly wage ($460.13) and his hypothetical wage-earning capacity ($326.00). This equals just $107.30 per week. Rick S. must support his family on just 19.2% of total wages.

Meanwhile, the pure premium rate has decreased 32.7% in 4 years. This has saved hundreds of millions for employers. Where do you think these savings are coming from? Ask Rick S.

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 35 years. Call (855) 221-2667 for a free consultation today.

Related information:

Own a small business? Demand a refund from workers’ comp!

Photos courtesy of Creative Commons, by uhuru1701.

Leave a Reply

Your email address will not be published.

Author Bio Jeffrey Kaufman

Author
Jeffrey E. Kaufman
Michigan Workers Comp Attorney

Jeffrey E. Kaufman has extensive experience in workers compensation cases and has recovered millions of dollars in benefits for his clients. He believes all injured workers deserve to be on equal footing with insurance companies and employers, and fights tenaciously so their rights are secured and protected.


“Jeff also helped me with getting my Blue Cross bills paid. I would absolutely recommend him and the whole firm. Jeff and the firm did everything they were supposed to do for me and my case.”
Ricardo Perfetto

Hundreds of 5-Star Reviews

Related Blog Posts

Get Help From our Michigan Workers’ Comp Lawyers Today

You’re not alone. Our Michigan workers’ comp lawyers have been called the best in the state, and our clients love how they’re treated with care, respect, and responsiveness. We will give you the time you need, we will explain your legal rights, and we will always treat you with respect.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Injured? It’s Time to Get Some Answers

Don’t let the insurance adjuster push you around. Request your free consultation today.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.