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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 a decline in your neighbors paycheck could have a big effect on your workers compensation benefits if you get hurt at work.

MLive.com published an interesting article last week about declining wages in Michigan. Not only have we lost thousands of jobs over the last 10 years but paychecks have gotten smaller compared to other states.

“Adjusted for inflation, annual private sector wages fell $2,488 in Michigan during the last decade, but rose $3,008 for all U.S. workers.”

The article points out that this $5,500 wage gap is the equivalent of nine months average rent in the Detroit area or nine months worth of groceries for a four-member family in Grand Rapids.

Trickledown effect

This “wage gap” could have an important effect on individuals who are hurt at work. Payment of lost wages under workers compensation is tied directly to the state average weekly wage. This means as wages go down so does the maximum weekly rate.

The injured worker is generally entitled to 80% of his or her after-tax average weekly wage. This comes out to be about 60% of gross pay. These lost wages are paid for as long as the person is totally disabled from work.

However, wage loss benefits are capped at 90% of the state average weekly wage. This means that an injured worker cannot receive more than $798 per week in 2013. It does not matter how much the person was actually earning. This can be devastating for high wage earners who must now face a substantial drop in pay.

Possible solution

It is time we abolish the maximum weekly rate and put a system in place that more fairly represents actual earnings. This is especially true now that insurance companies are free to use an individual’s  “wage earning capacity” to reduce the payment of benefits.

We should also start increasing wage loss benefits based upon inflation. Just like the federal government does with Social Security disability benefits.

To speak with one of our workers compensation lawyers in Michigan, call (855) 221-2667 for a free consultation. We are committed to protecting the rights of injured workers.

Alex Berman is the founder of Michigan Workers Comp Lawyers. He’s been representing injured and disabled workers exclusively for more than 35 years. Alex has helped countless people obtain workers comp benefits and never charges a fee to evaluate a case.

Related information:

Michigan workers compensation attorney explains the maximum weekly rate and how to calculate your 2013 wage loss benefits.

03/01/2013

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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

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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.