Michigan Workers Compensation Agency releases maximum rate for 2015 and how to double check your weekly wage loss benefits.
We blogged about the 2015 weekly benefit table being released. Now the 2015 maximum rate has been announced. This is based upon 90% of the state average weekly wage.
The 2015 maximum weekly rate is $820.00 based on a state average weekly wage of $910.71. This equals $42,640.00 per year in total wage loss benefits.
Feeling the pinch
Wage loss benefits are supposed to equal 80% of your after-tax average weekly wage. However, this amount is capped at 90% of the state average weekly wage. The idea is to limit benefits to what most employees in Michigan earn.
This means high wage earners are stuck with just $820.00 per week regardless of their regular income. This can be very difficult for families who are used to a certain standard of living.
The amount of your settlement is also typically based upon the weekly rate. Higher weekly checks means a larger settlement.
Double check the math
We frequently see errors in the average weekly wage calculation. Employers do not always provide the correct wage information. This results in insurance companies paying benefits at the wrong rate.
Make sure the insurance company is using the highest 39 paid weeks in the 52 before you got hurt. Overtime, bonuses, and premium pay must be included. Even fringe benefits that have been discontinued can be used to increase your average weekly wage. Sometimes wages from a second job count.
Watch out for insurance companies who reduce the weekly rate based upon “wage earning capacity.” This is when you are told jobs exist but no actual employment is offered.
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.
Photo courtesy of Creative Commons, by 401(K) 2013.