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Wage Loss Benefits

Under the Michigan no-fault law, an injured person is entitled to reimbursement for lost wages resulting from the motor vehicle accident.  The accident victim can receive 85% of their gross wages for up to three years from the date of the accident.

There is a statutory maximum you can receive in lost wages in one month.  This number is adjusted annually.  If your earnings exceed the statutory maximum, you can receive reimbursement from the negligent driver’s insurance company through a third-party claim.  This is called excess economic loss.

Wage loss includes regular wages, overtime and cost of living adjustments.  However, fringe benefits like health insurance and pension benefits or other nontaxable income is not a wage loss benefits and cannot be recouped.  A doctor’s work loss slip or other proof of income is almost always required to receive the benefit.

Insurance companies will usually require a wage, salary and benefits verification form to process the wage loss claim.  The wage verification form must be completed by the employer and include dates of employment, dates absent from work following the accident, the hourly wage or salary of the injured person and other wage information such as overtime hours and overtime pay.

It is important to understand that one doesn’t have to be employed on the date of the accident to receive wage loss benefits. If you were were temporarily unemployed at the time of the accident, you may be eligible to receive wage loss benefits under the Michigan no-fault law.

Please contact Michigan no-fault attorneys at 1-800-LEE-FREE (1-800-533-3733) to learn more about wage loss benefits and the Michigan no-fault law.