Michigan CEOs paid 795 times more than minimum wage and what this means for your maximum workers’ comp rate.
Fox 2 Detroit has a great article about income disparity between Michigan CEOs and rank-and-file workers.
Average compensation for a S&P 500 CEO was $14,712,548 in 2016. This works out to be $7,073 per hour or 795 times minimum wage. Regular production and nonsupervisory workers earned just $37,600 per year.
Wages are a big factor when it comes to calculating workers’ comp benefits. Disabled employees are supposed to receive 80% of after-tax value of their average weekly wage. This is approximately 60% of gross pay. However, the maximum workers’ comp rate is limited to $870 per week.
The idea is to limit wage loss benefits to 90% of the state-wide average weekly wage. This means high wage earners are stuck with an arbitrary maximum regardless of their income. The good news is disabled CEOs are stuck earning just $870 per week under workers’ comp. The bad news is everyone else is limited too! Some people have their benefits cut even more based upon residual wage earning capacity and “phantom wages.”
We are strong advocates for paying a living wage and think it is time to end the maximum rate. Let’s pay disabled employees 100% of their lost wages. How many millionaire S&P 500 CEOs get their hands dirty anyway?
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.
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