Wage Loss Following A Motor Vehicle Accident 

             Losing your income and maybe even your job because you were injured in an accident and cannot work is a frightening and anxiety-producing experience.  Michigan’s no-fault insurance law was designed to prevent financial disaster and help persons pay their bills as they recuperate from their injuries.  

No-Fault wage loss benefits are available from the first-party (PIP) insurer under the Michigan No-Fault Act.  Wage loss benefits include loss of income from work that an injured person would have performed during the first three years after the date of the accident if the person had not been injured.  The wage loss benefit is based upon the income you would have earned if you had not been injured and is reduced by 15% for taxes that would have been deducted from your income had you been working.   The maximum benefit allowed under the No-Fault Act varies from year to year.  During the period from 10/1/11 through 9/30/12 the maximum monthly work loss benefit is $5,104.00.  Wage loss benefits are restricted to taxable income and do not include health insurance, pensions, retirement contributions, etc. 

If at the time of the accident you were temporarily unemployed but were actively seeking employment, wage loss is based on earned income during the last month you were employed full time before the accident.  Temporarily unemployed means that work is not available to you at the time of the accident.  The mere intention to look for work does not qualify under the temporarily unemployed provision.  You must have been actively seeking employment at the time when the accident happened. 

In order to claim lost wages, you must prove that you are disabled from working as a result of the injuries from the accident.  Proof of your disability is generally provided by a physician who provides a statement describing the injury causing the disability, the length of time the disability is expected to last, whether the disability is total or partial, and if partial, whether any work restrictions apply if you return to work, such as no lifting, sit-down job only, etc.

If your wage loss will exceed the maximum monthly limit or the three year limit allowed by No-Fault benefits, a claim for excess wage loss benefits can be made by suing the driver of the motor vehicle involved in your accident and proving in court that the driver was at fault in causing the accident.