Workers’ Compensation Agency (WCA) releases maximum weekly rate for 2017 and why you should always double check insurance company math.
We previously blogged about the 2017 benefit tables being released. Now the 2017 maximum weekly rate has been announced. This is based upon 90% of the state-wide average weekly wage.
The 2017 maximum weekly rate is $870.00 based on a state-wide average weekly wage of $965.62. This equals $45,240.00 on an annual basis.
It does not matter how much a person actually earns. The idea is to limit disabled employees to what most people in Michigan are actually paid. Unfortunately, this punishes high wage earners who are forced to live with this maximum.
Average Weekly Wage (AWW)
Insurance companies often make errors in the average weekly wage calculation. Employers don’t always provide necessary wage information and estimates are used. This can result in a much lower weekly check.
It is important to verify the insurance company is using the correct highest 39 out of 52 paid weeks. Overtime, bonuses, premium pay, and the value of discontinued fringe benefits should be included. Even wages from a second job should be counted.
Weekly Comp Check
Disabled employees should receive 80% of their after-tax average weekly wage. Tables published by the WCA show the correct weekly rate. Tax filing status and number of dependents will also be need to be known.
Watch out for insurance companies who reduce the weekly rate based upon “wage earning capacity.” This is when you are told by the insurance company that jobs exist but no actual employment is offered. It is important to speak with an attorney if this occurs.
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 kenteegardin.