Michigan Workers’ Compensation Rates for 2020

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Michigan Workers' Compensation Rates for 2020

Workers’ Disability Compensation Agency (WDCA) releases Michigan workers’ compensation rates for 2020 and how to calculate the weekly benefit amount.

Michigan workers’ compensation rates for 2020 are set by law. The maximum weekly comp rate for 2020 is $934.00. It is the weekly amount a disabled employee should receive when unable to work because of getting hurt on-the-job. It is limited to 90% of the state-wide average weekly wage, which is $1,037.10.

The idea is to limit disabled employees to what most people in Michigan are earning. It does not matter how much a disabled employee was earning before getting hurt. Unfortunately, this maximum punishes high wage earners who are stuck with this cap.

Watch out for insurance companies who simply estimate the weekly rate. Here is how to double check insurance company math and make sure the correct Michigan workers’ compensation rates for 2020 are being used so that the correct amount is being paid.

Step 1: Calculate the average weekly wage

Calculate the average weekly wage (AWW) using pay stubs from the 52 paid weeks before getting hurt. Make sure to include overtime and bonuses in the gross amount. The value of discontinued fringe benefits can also be used under specific circumstances. We recommend organizing 52 weeks of pay stubs in order from highest gross amount to lowest gross amount. Select the highest 39 pay stubs and add these amounts together. Divide this total amount by 39 to calculate the average weekly wage. Use all paid weeks if working 39 weeks or less for this employer.

Step 2: Use benefit table to find weekly Michigan workers’ compensation rates for 2020

Disabled employees should receive 80% of their after-tax average weekly wage. Tables published by the WDCA show the Michigan workers’ compensation rates for 2020 based upon AWW, tax filing status, and number of dependents. Disabled employees can also make use of an online calculator. Wage loss benefits under workers’ compensation are income tax free.

Step 3: Resolve any math errors

Math errors occur when the employer does not cooperate and fails to provide wage records. Do not let the insurance company estimate the weekly rate by just using hourly wage. Our experience shows that disabled employees are leaving money on the table when this occurs. It could also impact settlement value if the weekly rate is not corrected prior to the start of negotiations. Give pay stubs directly to the insurance company if the employer refuses to cooperate. Speak with an experienced workers’ compensation lawyer if you believe weekly checks are too low.

Michigan law also permits insurance companies to pay less based upon post-injury wage earning capacity (PIWEC). They use “phantom wages” from jobs that are not even be available to reduce the weekly amount paid. It is critical to speak with an experienced workers’ compensation lawyer if this occurs. Vocational assessments by insurance company representatives can be challenged in court. A good-faith job search can be used to prove that no employer will accept current restrictions.

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.

Related information:

What If My Workers’ Comp Check Is Late?

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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

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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.

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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.