WCA releases Michigan Workers’ Compensation rates for 2018 and how to double check insurance company math.
The WCA announced that the Michigan Workers’ Compensation rates for 2018; the maximum weekly comp rate for 2018 is $900 per week. Michigan law places a cap on how much a person can receive under workers’ comp. It is limited to 90% of the state-wide average weekly wage.
It does not matter how much a person was earning before getting hurt. The idea is to limit disabled employees to what most people in Michigan are paid. Unfortunately, this punishes high wage earners who are forced to live with this maximum.
Watch out for average weekly wage errors
Insurance companies often make errors in the average weekly wage calculation and this can result in a smaller disability check. It is important to verify the insurance company is using the highest 39 out of the 52 paid weeks before injury. Overtime, bonuses, premium pay, and the value of discontinued fringe benefits should be included. Even wages from a second job can be included under specific circumstances. Watch out for insurance companies who just estimate wages instead of obtaining records from the employer.
Weekly comp rate
Disabled employees are supposed to receive 80% of their after-tax average weekly wage. Tables published by the WCA show the correct Michigan Workers’ Compensation rates for 2018 based upon tax filing status and number of dependents. Watch out for insurance companies who artificially reduce the weekly comp rate based upon post-injury wage earning capacity (PIWEC). This is when the insurance company says a person can work but no jobs have been 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 (844) 316-8033 for a free consultation today.
Photo courtesy of Creative Commons, by 401(K) 2013.