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Michigan No-Fault Wage Loss Rules Updated

If you have been injured in a car accident on Michigan roads and need to know how much money you will be entitled to for wage loss from your personal injuries, the accident lawyers of Michigan Auto Law can help.

As of Oct. 1, 2008 through Sept. 30, 2009, the new statutory maximum for Michigan no-fault (personal injury protection, PIP) wage loss is $4,948 per month. In other words, if you are out of work due to debilitating injuries from a Michigan car accident, you are entitled to at most, $4,948 each month.

Based on the no-fault wage loss formula, which is 85 percent of one’s gross income tax-free, the maximum amount for wage loss equates to an estimated annual income of $70,000. So if you earn less than $70,000 per year, your income should be fully covered by no-fault wage loss benefits in the event of an auto accident.

If a Michigan Car Accident Victim Earns More Than $70,000 Per Year…

If you earn more than $70,000 per year, anything you are owed over the statutory maximum is considered “excess wage loss” and is recoverable from the policy of the person who caused the accident.

Please note that excess wage loss, which is an economic loss, is subject to pure-comparative negligence. This means you can recover your wage loss on a pro-rata basis, depending on the percentage of liability between the parties. For example, if you were 75 percent at-fault and the other party was 25 percent at-fault, you could recover up to 25 percent of your excess wage loss from the wrongdoer’s policy.

If both parties were 50 percent at-fault, you can recover up to 50 percent of your excess wage loss. Obviously, if you are 100 percent responsible for the car or truck accident, there is no recovery for excess wage loss.

More Michigan Wage Loss Benefits Facts

Michigan No-Fault Wage loss benefits are restricted only to taxable income. Therefore, wage loss benefits do not include heath insurance, pension and other contributions.

Wage loss benefits may be continued past the date of ability to return to work if the job is no longer available to the person injured in the auto accident.

Additionally, a claimant may be entitled to wage loss benefits if an injury leads directly to a further disabling condition, such as drug dependency.

For more information on Michigan wage loss benefits and various court cases that have established the law, please visit Michigan Auto Law’s No-Fault Law Resource Center and wage loss section.

Meanwhile, if you have been seriously injured in a car crash and are unable to work, please call the no-fault attorneys of Michigan Auto Law. Our law firm has more than 50 years experience exclusively handling car, truck and motorcycle accident cases in Michigan. We can get you the benefits and compensation you are afforded following your unfortunate car accident.

– This post was written by Jeffrey Bussell, an auto accident attorney who is part of Michigan Auto Law’s Pre-Suit Division and works closely with new clients.

Related information:
Allowable Medical Expenses for Michigan Car Accident Victims

Replacement Service Benefits for Michigan Auto Accident Victims

Michigan Personal Injury Lawyer Video: Overview of No-Fault Benefits

What to Do if You’ve Been in a Car Accident in Michigan

Michigan Auto Law exclusively handles car accident, truck accident and motorcycle accident cases throughout the entire state of Michigan. We have offices in Farmington Hills, Detroit, Ann Arbor, Grand Rapids and Sterling Heights.

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