Penalizing low wage earners is a tragedy

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.

How phantom wages are used to hurt families who must rely upon Michigan workers’ compensation benefits.

8499205674_8061563ddd_mI participated in a facilitation last week. This is when an impartial magistrate attempts to informally resolve a case. It’s a great opportunity to test your proofs and see about your chances at trial.

The defense attorney brought up the usual wage earning capacity argument. This is when an insurance company says a person can work and uses “phantom wages” as an offset. This was a weak argument because my client is a high wage earner and still entitled to substantial benefits.

The facilitation reminded me about how low wage earners suffer the most under Michigan’s current workers’ compensation system. Here is another example of how fuzzy math can be used to hurt families.

Last week we blogged about how a person earning $14.00 per hour would receive just 19.2% of total wages or $107.30 per week with a phantom minimum wage offset. This number would be even worse if the person was only earning $10.00 per hour. His weekly rate would be $11.97 per week. Just enough for coffee and a sandwich.

Now let’s see how a higher wage earner with a wife and child is affected. Imagine a man who was earning $35.00 per hour with an average weekly wage of $1,400.00. His weekly rate should equal $820.000, maximum rate for 2015. The insurance company makes the same argument about unskilled minimum wage work and says he can earn $326.00 per with his disability. His new weekly rate is $565.51. This represents a little more than 1/3 of his gross but he can at least buy some groceries.

Why is the system punishing low wage earners who need workers’ compensation the most? It is time that we bring fairness back and provide an adequate level of benefits.

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:

Can you support a family on $107.30 per week?

Photos courtesy of Creative Commons, by Maura Teague.

Leave a Reply

Your email address will not be published. Required fields are marked *

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.