Minimum wage increasing January 1, 2016

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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 and how this could impact your workers’ comp benefits.

Michigan employees will see an increase in the minimum wage rate from $8.15 to $8.50 on January 1, 2016. The rate will continue increasing by 25% each year until 2018 when it reaches $9.25.

We are strong advocates for a living wage and support this change. However, increasing the minimum wage could have an impact on your workers’ comp benefits.

Workers’ Comp Rate

Disabled employees are supposed to get 80% of their after-tax average weekly wage. This amount is capped at 90% of the state-wide average weekly wage, currently $910.71 per week.

The idea is to limit wage loss benefits to what most people in Michigan are actually paid. This means high wage earners are stuck with an arbitrary maximum regardless of their income. The maximum weekly rate for 2015 is only $820.00.

Increasing the minimum wage will result in a higher state-wide average weekly wage. This means potentially greater workers’ comp benefits even if a person’s salary remains the same.

Wage Earning Capacity

Insurance companies can also use a higher minimum wage against injured workers. Michigan’s workers comp law permits a reduction for “wage earning capacity.” The offset for an entry level or unskilled job would be set at minimum wage.

Insurance companies hire vocational experts to say jobs are available. A person may be told he or she can find work in a field never considered before. It does not matter whether a real job is actually 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 (855) 221-2667 for a free consultation today.

Related information:

State of Michigan – Average Weekly Wage Chart

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

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.