Minimum wage being raised to $9.25

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Why raising the minimum wage will have a positive impact on workers compensation benefits in Michigan.

The Michigan Legislature has passed a bill raising the minimum wage from $7.40 to $9.25. Governor Snyder has signed this legislation and increases will begin on September 1, 2014.

The minimum wage will gradually increase to $9.25 per hour by 2018. Future increases will be linked to the rate of inflation in other Midwestern states.

This is welcome news for low wage earners. It should also have a positive effect on workers compensation benefits across the state.

Workers compensation

A disabled employee should receive 80% of his or her after-tax average weekly wage. However, this amount is capped at 90% of the state-wide average weekly wage.

The idea is to limit workers compensation benefits to what most employees in Michigan are actually being paid. This means high wage earners are stuck with an arbitrary maximum regardless of their income.

Increasing the minimum wage will result in a higher state-wide average weekly wage. This means potentially greater workers compensation benefits even if a person’s salary has not increased.

How the math works

The 2014 maximum rate is $805.00 based on a state average weekly wage of $893.44. This results in $41,860.00 per year in total wage loss benefits. It does not matter if you are a professional football player or a neurosurgeon. You are stuck with this maximum rate.

Individuals with low paying jobs are in a worse position. Current minimum wage is $7.25 per hour. Working 40 hours per week would mean an average of $290.00. For a single person with no dependents, he or she would be entitled to $196.56 per week or $10,221.12 per year.

Michigan Workers Comp Lawyers never charges a fee to evaluate a case. We have represented injured and disabled workers exclusively for more than 35 years. Call (855) 221-2667 for a free consultation.

Related information:

Snyder signs minimum wage hike to $9.25

Photo courtesy of Creative Commons, by r-z.

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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 workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.

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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.