Wage Loss - Helpful Facts & Law to Know

You are entitled to reimbursement of 85% of your gross wage, not to exceed $1,000 plus the cost of living adjustment. The statutory maximum is $4,027 per month, effective through September 30, 2004 .

Wage loss benefits may be continued past the date of ability to return to work if the job is no longer available to the Michigan auto accident injured person, however, no further benefits are owed if the position was lost due to economic circumstances.

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

Wage loss benefits are restricted to only taxable income. Wage loss benefits therefore do not include health insurance, pension, and other contributions.

The proper method of computing wage loss for a self-employed person is defined in Adams v. ACIA, a 1986 Michigan Supreme Court case.

An investor for profit cannot receive wage loss benefits because it is not earned income.

Under Brown v. Fireman's Fund, a 1980 federal court case, tax returns are not the sole proof of showing wage loss.

When computing wage loss , items such as salary increases, overtime, step increases, COLA, which may have been earned during the period of disability, may be included.

In Kirksey v. Manitoba Public Insurance Co., the court ruled that a claimant who had a sporadic work history was allowed to collect wage loss benefits on the potential of full time employment.

MESC is not a measure of lost work days .

If a claimant suffers an intervening illness, disease or trauma, which is disabling by itself, or if the claimant accepts wage loss benefits related to a pre-existing illness or trauma, then wage loss benefits do not continue. For example, in MacDonald v. State Farm , a claimant who suffered a disabling heart attack following, but not caused by, a Michigan automobile accident, could not get his no-fault insurer to pay wage loss benefits . Furthermore, a claimant who accepts worker's compensation benefits from a pre-existing injury cannot collect no-fault wage loss benefits while continuing to receive the worker's compensation benefits.

In fact, being incarcerated acts as an intervening event which would remove a claimant from the work force, ruled the court in Luberda v. Farm Bureau .

Wage loss benefits expire upon death or 3 years form date of the accident.

The rental of a truck may be an element of wage loss . For example, in Coates v. Michigan Mutual Ins. Co. , the loss of rental income ceased when the claimant was capable of returning to work.

The claimant must show the actual loss of wages .

A college student cannot claim wage loss when an accident delayed his graduation. Nor can a student nurse.

But under Sullivan v. North River Ins. Co. , a claimant can make a claim for loss of potential earnings.

Even though an employer voluntarily pays disability and accident benefits or wage continuation, it doesn't remove the claimant's right to wage loss benefits .

If a claimant secures employment, which pays less money, then he may be entitled to a differential from his no-fault insurer, ruled the court in Smellenberger v. Celina Mutual . However, the claimant does have a duty to find alternative employment in an effort to mitigate damages.

If a claimant earns income beyond the period of disability, it cannot be deducted from work loss benefits even if combined income and benefit during a 30-day period exceeds the statutory maximum. But, if the income is earned during the period of disability, then it should reduce the wage loss benefit.

Wage Loss - Helpful Facts & Law to Know
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