Minimum wage increases on January 1, 2018

Call now for a free consultation
Available 24/7

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.
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 we pride ourselves on providing you with care, trust, and responsiveness.

Reminder about minimum wage increase on January 1, 2018 and how this could impact workers’ comp benefits in Michigan.

Michigan employees will see an increase in the minimum wage from $8.90 to $9.25 per hour on January 1, 2018. We are strong advocates for a living wage and applaud this change. Increasing the minimum wage will have both a positive and negative impact on workers’ comp. Here is why you should care.

Disabled employees are supposed to receive 80% of their after-tax average weekly wage under workers’ comp. However, weekly checks are capped at 90% of the state-wide average weekly wage. The idea is to limit wage loss benefits to what most people in Michigan earn. High wage earners get stuck with an arbitrary maximum regardless of their income. For example, a factory worker and the CEO are both stuck with a maximum of $870.00 per week in 2017. Increasing the minimum wage will result in a higher state-wide average weekly wage. This means potentially greater wage loss benefits even if income levels remain the same. This is a positive.

Insurance companies can also use a higher minimum wage against disabled employees. Workers’ comp reforms passed in 2011 permit insurance companies to use “wage earning capacity” to reduce or eliminate the payment of benefits. Phantom wages from jobs that may or may not exist are used to offset the 80% weekly rate. It does not matter whether actual wages are paid. This is a negative!

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) 201-9497 for a free consultation today.

Related information:

Why your “wage earning capacity” matters under Michigan workers’ compensation

Photo courtesy of Creative Commons, by m01229.

Leave a Reply

Your email address will not be published.

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

Related Blog Posts

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.