Re: Lawyer Says They'll Want to Settle
Michigan is one of the worst, you don't want to get injured on the job in that state.
Snyder gutted the system to pander to employers and as a favor to the insurance industry.
It's impossible to guess at what's a fair proposal - there are too many factors that come into play, every case is unique.
Due to the new phantom wage laws, the carrier gets credit for wages even though you may not be employed, this amount is deducted from your benefits.
This scheme is a joke, in some cases you may end up with nothing depending on the type of "phantom wage" the carrier dreams up - it's insurance fraud at it's highest level.
You dam well know what would happen if we tried to pass legislation introducing "phantom injury" to determine benefits, we'd get laughed out of the Capitol.
That term "phantom wage" just sounds weird, it's an admission that the system is a joke - I don't see how any attorney or judge could use it without laughing.
Because of this fraud, employers have no incentive to accommodate injured employees with restrictions, they get credit as if they've reinstated the employee full time.
If the responsible employer won't accommodate restrictions, why would other employers - I can't think of many companies looking to hire and assume the liability for a disabled worker.
This scam renders injured workers unemployable but denies them wage loss benefits - it's outright fraud and should be repealed.
This scam has been quite successful in enriching the carriers at the cost of tax payers and middle class wage earners.
Since enacted, House Bill 5002 (S-3) has robbed billions of dollars in wage loss benefits from deserving worker compensation claimants.
The cost is transferred to the taxpayers because of the increase in Social Services needed to support the disenfranchised workers.
The truth about “wage earning capacity” and phantom wages.
Think of wage earning capacity as the ability to earn money in another job. The problem is that insurance companies make this determination on their own. A labor market survey is performed and a list of jobs is complied. Phantom wages are then used to offset weekly checks.
One of our clients was disabled from her job as a nurse. She was told by her employer that lots of alternate positions exist but not with their hospital. Her weekly benefits were cut-off leaving her with no income.
Michigan: The 94% Solution
Even if an injured worker prevails, their weekly rate of compensation can be drastically reduced by theoretical wages, a legal fiction created by the Michigan Supreme Court and subsequently adopted by Michigan’s legislature by HB 5002. Under the theory, which reverses 90 years of precedent and practice (Sington and Stokes, supra), an employer is allowed to reduce weekly disability benefits by the amount of wages an injured worker could, theoretically, earn taking into consideration the post-injury wage earning capacity.
Last edited by tony; 08-27-2016 at 07:55 AM.
Moderator Responses are based on my personal bias, experience and research - They do not represent the views of the admin nor may be accepted in the legal community, always consult an attorney.