Michigan attorney explains how to calculate workers’ comp benefits and what a person can do to ensure they are fairly paid.
How much do you get paid on workers’ comp in Michigan? This is a common question that is supposed to have an easy answer. In short, it is 80% of your after-tax average weekly wage. However, recent changes to Michigan work injury law have complicated what is actually paid.
Here is how you calculate the base weekly comp rate: Take the highest 39 paid weeks out of the 52 weeks before you got hurt. This can be figured out by using paystubs. If you have worked less than 39 weeks for this employer, just use the total weeks worked. Add them up and come up with an average amount. Don’t forget to include overtime, the value of discontinued fringe benefits, and second jobs that cannot be performed anymore. Use tables published by the State of Michigan to find the weekly comp rate based upon tax filing status and number of dependents.
In Michigan, what workers’ comp pays you should come out to be about 60% of gross pay. Watch out for insurance companies who use post-injury wage earning capacity (PIWEC) to say other jobs are available. This is when a labor market survey shows work is available, but no actual job is provided. We have seen some people have their weekly comp rate slashed by over 50%. It is important to contact a lawyer should this occur.
Individuals who are doing light duty work but not earning full wages should also get a wage differential. This is money to help make-up the difference. In Michigan, what workers’ comp pays you depends upon what you are earning while working under restrictions.
How much do you get paid on workers’ comp in Michigan?
In Michigan, workers’ comp generally pays 80% of a person’s after-tax average weekly wage. This is calculated using the highest 39 weeks out of the 52 weeks before the accident. It includes money for overtime, discontinued fringe benefits, and even second jobs. A good rule of thumb is 60% of gross pay should be paid.
80% of your after-tax average weekly wage is the general rule. However, this amount will be limited by a state maximum. Lost wages are automatically capped at 90% of the state average weekly wage ($1,048.00 for 2022) regardless of income. It does not matter if a person is an orthopedic surgeon or plays for the Detroit Lions.
Other rules to know
Discontinued fringe benefits cannot be used to increase the weekly rate if the amount is already 2/3 of the state average weekly wage.
According to Michigan workers’ comp laws, a minimum 50% of the state average weekly wage should be paid if an employee dies on-the-job. Spouses, children, and other family members need to show dependency to qualify, and the rate could be reduced based upon support from other sources.
Individuals can also see their weekly comp rate lowered based upon old age (65) or Social Security retirement benefits. Sometimes receipt of a disability pension can be used as an offset.
We recommend speaking with an experienced workers’ comp lawyer to help calculate the correct amount of wage loss benefits. Insurance companies frequently make mistakes, and they are never in your favor. Don’t leave money on the table when calculating the weekly comp rate or settlement. Call us for a free telephone consultation today!
Injured while on-the-job in Michigan? Contact our lawyers now
If you were injured while on the job in Michigan and you are concerned with how much workers’ comp will pay you for your work injury claim, call now or fill out our contact form for a free consultation. There is absolutely no cost or obligation. Our attorneys are here for you.
Our attorneys have been exclusively helping injured workers in Michigan for more than 35 years. Our attorneys can help you better understand Michigan work injury 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 35 years. Call (844) 316-8033 for a free consultation today.