Michigan Workers’ Compensation Rates For 2021 Published

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Workers’ Disability Compensation Agency publishes Michigan workers’ compensation rates for 2021 and learn how to double check insurance company math.

Michigan Workers' Compensation Rates For 2021 Published

Michigan workers’ compensation rates 2021 have now been published. The maximum weekly comp rate for 2021 is $975.00. This is based upon 90% of the state-wide average weekly wage.

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. There are no minimum payments except for specific loss and death.

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 2021 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 weeks before getting hurt. Make sure to include overtime in the gross amount. The value of discontinued fringe benefits can also be included under specific circumstances. Even second jobs that cannot be performed now can be used.

We recommend organizing 52 weeks of pay stubs in order from highest amount to lowest amount. Select the highest 39 pay stubs and add these weekly amounts together. Divide this total amount by 39 to calculate the average weekly wage. Use all paystubs if you worked 39 weeks or less for this employer.

Step 2: Use benefit table to find weekly Michigan workers’ compensation rates 2021

Disabled employees should receive 80% of their after-tax average weekly wage. Tables published by the Agency show the Michigan workers’ compensation rates 2021. The amount paid is 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 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” 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 are not fair and can be challenged in court. A good-faith job search can be used to show 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:

How Does Workers’ Comp Pay You?

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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.