How do I Get my Wages Back After a Michigan Car Accident? | JD Supra

Last updated: 04-24-2020

Read original article here

How do I Get my Wages Back After a Michigan Car Accident? | JD Supra

How do I Get my Wages Back After a Michigan Car Accident?
To embed, copy and paste the code into your website or blog:

A lost wages claim after a car accident in Michigan provides an essential, financial lifeline for car accident victims whose injuries prevent them from returning to work. No-Fault auto insurance pays 85% of a person’s wages, tax-free, for up to three years from the date of the accident – regardless of fault.
For car accident victims and their families who are already worried about recovering from injuries, getting necessary medical care and continuing to pay bills, this No-Fault benefit is one of the most important legal rights that people have under our state’s unique auto No Fault law.
What are wage loss benefits after car accident in Michigan?
Wage loss benefits, as guaranteed by Michigan’s No-Fault law, provide reimbursement to car accident victims for 85% of the wages and income they would have earned during the first three years after the accident had their accident-related injuries not disabled them from returning to work. (MCL 500.3107(1)(b))
How To Claim For Lost Wages From A Car Accident
To claim lost wages from a car accident, an injured person must: First, file an application for No-Fault benefits with the auto insurance company; provide proof of income lost from not returning to work; provide a work disability certificate from the doctor; and provide wage verification from his or her employer.
Any or all of the following documents can be used to provide “reasonable proof” of a victim’s income for purposes of claiming these No-Fault benefits:
A “Michigan Motor Vehicle No-Fault Insurance Law Wage, Salary and Benefits Verification” form completed by the victim’s employer.
A copy of the victim’s pay stubs for the two months prior to the auto accident.
A copy of the victim’s most recent W2, i.e., the Internal Revenue Service’s “Form W-2 Wage and Tax Statement.”
To document that a doctor has deemed a car accident victim disabled from returning to work, victims can use our “ Work Disability Certificate ” form.
The No-Fault law in Michigan merely requires “reasonable proof” be provided so a lost wages claim after a car accident can be paid in a prompt and expeditious manner. (MCL 500.3142(2))
Are these No-Fault benefits available if someone was temporarily unemployed?
Yes. For a Michigan auto accident victim who was “temporarily unemployed” — or even who was working reduced hours — at the time of a car accident, his or her lost wages claim “shall be based on earned income for the last month employed full time preceding the accident.” (MCL 500.3107a)
That means people who can show they are actively looking for employment when they are injured in a car accident can still recover wage loss from their No-Fault insurance companies.
Lost wages claim from car accident with injury
A person must have suffered an injury, i.e., an “accidental bodily injury,” resulting from a car accident in order to claim and receive No-Fault lost wages benefits. (MCL 500.3105(1)) Additionally, the injury must be the reason that the car accident victim is unable to return to work.
Lost wages claim from car accident without injury
You cannot make a No-Fault lost wages claim if you have not suffered an injury in a car accident that prevents you from working. Michigan No-Fault benefits, including reimbursement for wage loss, are payable only if a person has suffered an “accidental bodily injury” from a car accident.
How much can a person receive in a claim?
If a person suffers auto-accident-related injuries that prevent him or her from returning to work, then a No-Fault lost wages claim after a car accident will pay up to 85% of the “income from work” the “injured person” would have earned “if he or she had not been injured.” (MCL 500.3107(1)(b))
However, these benefits are capped at a monthly “maximum” amount (see below) that’s “adjusted annually to reflect changes in the cost of living,” but a “change in the maximum shall apply only to benefits arising out of accidents occurring subsequent to the date of change in the maximum.” (MCL 500.3107(1)(b))
What is the Michigan No-Fault wage loss maximum after car accident?
The maximum monthly wage loss amount is $5,718 for the period from October 1, 2019 through September 30, 2020.
Can I get lost wages claim after a car accident beyond the limits in the No-Fault law?
To obtain a lost wages claim after a car accident that exceeds the monthly maximum amount or the 3-year limit – and/or future wage loss and future economic loss – a victim will need to file a third-party tort lawsuit against the at-fault driver for “excess” and/or “future” wage losss. (MCL 500.3135(3)(c)). A lawyer can then sue on your behalf for all future economic loss not paid by No-Fault insurance, including wage loss in excess of the statutory monthly maximum, in a tort (or injury) lawsuit against the negligent, at-fault driver who caused the car accident.
Who pays for these No-Fault benefits after a car accident?
No-Fault lost wages claims after a car accident are paid by a person’s auto insurance company (or the auto insurance company that is determined to be liable under the No-Fault “priority” rules). (MCL 500.3105(1))
Can I claim the No-Fault benefits if I caused the car accident?
Yes. Wage loss claims are paid “without regard to fault,” i.e., even if the injured person who is seeking these No-Fault benefits was at-fault in causing the car accident. (MCL 500.3105(2))
However, this means you will be limited to only recovering these benefits from your own No-Fault insurance company. You cannot sue yourself in tort for your injuries and pain and suffering and future and excess economic loss if you caused the car accident.
How long can a car accident victim receive these No-Fault benefits?
A wage loss claim will be paid “during the first 3 years after the date of the accident.” (MCL 500.3107(1)(b))
When will I receive a check for my claim?
The auto insurance company is supposed to pay you “within 30 days” of receiving “reasonable proof” of your “loss of income from work an injured person would have performed during the first 3 years after the date of the accident if he or she had not been injured.” (MCL 500.3142(2); 500.3107(1)(b))
If the auto insurance company has received “reasonable proof” of your lost wages claim after a car accident and fails to pay within 30 days, then your benefits are “overdue.”
Our auto accident attorneys strongly recommend calling your insurance adjuster after each submittal to confirm receipt and to inquire about whether any additional documentation is needed from you. Once you receive confirmation that your wage and salary verification form and whatever additional information has been received by your claims adjuster, and that your claims adjuster has told you that the information is sufficient and there is no additional information to constitute reasonable proof, document that as well in a separate letter or email so that the 30 days begins to run.
You do not need to hire a lawyer to receive wage loss benefits or other No-Fault benefits (and you should run from any lawyer who tells you that you do). That said, we always recommend talking to an experienced auto No-Fault lawyer to make sure you are receiving everything you should be and you are protecting your legal rights. The initial phone call and consultation is always free of charge.
I wrote “supposed to pay” above for a reason. From experience, unfortunately, the 30-day rule is something that far too many claims adjusters ignore. Sadly, for too many innocent and injured people waiting for wage loss after a car accident, you are just one more file. A claims adjuster can easily have two or three hundred claims open at a time. In a state like Michigan that does not have insurance bad faith laws or punitive damages to stop adjusters from ignoring claims, it is often very hard to get a claims adjuster to make prompt payments. That leaves people with the unenviable choice of continuing to be ignored or hiring a lawyer to sue for incurred and outstanding No-Fault benefits and wage loss. Even when a person has hired a lawyer and started a lawsuit for outstanding benefits, you will likely only recover penalty interest and attorney fees by taking the case to judgment or verdict, so there is often no real deterrent to force adjusters to pay outstanding claims promptly.
Can I claim lost wages on my taxes?
No you can’t claim lost wages after a car accident on your taxes. These No-Fault benefits that victims receive from their auto insurance company are not taxable income” under Michigan law. Because they are not taxable , benefits are reduced 15%, leaving the victim a payment equal to 85% of their wages. (MCL 500.3107(1)(b))
However, if as part of a third-party tort lawsuit a car accident victim seeks “excess” wage loss benefits beyond the monthly and/or 3-year limits – or future wage loss – then any such recovery will be treated as income that will be taxed. Importantly, taxes should include social security and Medicare taxes.
DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
© Michigan Auto Law
+ Follow x Following x Following - Unfollow
+ Follow x Following x Following - Unfollow
Michigan Auto Law on:
"My best business intelligence, in one easy email…"
Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
- hide
JD Supra Privacy Policy
Updated: May 25, 2018:
JD Supra is a legal publishing service that connects experts and their content with broader audiences of professionals, journalists and associations.
This Privacy Policy describes how JD Supra, LLC ("JD Supra" or "we," "us," or "our") collects, uses and shares personal data collected from visitors to our website (located at ) (our "Website") who view only publicly-available content as well as subscribers to our services (such as our email digests or author tools)(our "Services"). By using our Website and registering for one of our Services, you are agreeing to the terms of this Privacy Policy.
Please note that if you subscribe to one of our Services, you can make choices about how we collect, use and share your information through our Privacy Center under the " My Account " dashboard (available if you are logged into your JD Supra account).
Collection of Information
Registration Information. When you register with JD Supra for our Website and Services, either as an author or as a subscriber, you will be asked to provide identifying information to create your JD Supra account ("Registration Data"), such as your:
Other Information: We also collect other information you may voluntarily provide. This may include content you provide for publication. We may also receive your communications with others through our Website and Services (such as contacting an author through our Website) or communications directly with us (such as through email, feedback or other forms or social media). If you are a subscribed user, we will also collect your user preferences, such as the types of articles you would like to read.
Information from third parties (such as, from your employer or LinkedIn): We may also receive information about you from third party sources. For example, your employer may provide your information to us, such as in connection with an article submitted by your employer for publication. If you choose to use LinkedIn to subscribe to our Website and Services, we also collect information related to your LinkedIn account and profile.
Your interactions with our Website and Services: As is true of most websites, we gather certain information automatically. This information includes IP addresses, browser type, Internet service provider (ISP), referring/exit pages, operating system, date/time stamp and clickstream data. We use this information to analyze trends, to administer the Website and our Services, to improve the content and performance of our Website and Services, and to track users' movements around the site. We may also link this automatically-collected data to personal information, for example, to inform authors about who has read their articles. Some of this data is collected through information sent by your web browser. We also use cookies and other tracking technologies to collect this information. To learn more about cookies and other tracking technologies that JD Supra may use on our Website and Services please see our " Cookies Guide " page.
How do we use this information?
We use the information and data we collect principally in order to provide our Website and Services. More specifically, we may use your personal information to:
Operate our Website and Services and publish content;
Distribute content to you in accordance with your preferences as well as to provide other notifications to you (for example, updates about our policies and terms);
Measure readership and usage of the Website and Services;
Communicate with you regarding your questions and requests;
Authenticate users and to provide for the safety and security of our Website and Services;
Conduct research and similar activities to improve our Website and Services; and
Comply with our legal and regulatory responsibilities and to enforce our rights.
How is your information shared?
Content and other public information (such as an author profile) is shared on our Website and Services, including via email digests and social media feeds, and is accessible to the general public.
If you choose to use our Website and Services to communicate directly with a company or individual, such communication may be shared accordingly.
Readership information is provided to publishing law firms and authors of content to give them insight into their readership and to help them to improve their content.
Our Website may offer you the opportunity to share information through our Website, such as through Facebook's "Like" or Twitter's "Tweet" button. We offer this functionality to help generate interest in our Website and content and to permit you to recommend content to your contacts. You should be aware that sharing through such functionality may result in information being collected by the applicable social media network and possibly being made publicly available (for example, through a search engine). Any such information collection would be subject to such third party social media network's privacy policy.
Your information may also be shared to parties who support our business, such as professional advisors as well as web-hosting providers, analytics providers and other information technology providers.
Any court, governmental authority, law enforcement agency or other third party where we believe disclosure is necessary to comply with a legal or regulatory obligation, or otherwise to protect our rights, the rights of any third party or individuals' personal safety, or to detect, prevent, or otherwise address fraud, security or safety issues.
To our affiliated entities and in connection with the sale, assignment or other transfer of our company or our business.
How We Protect Your Information
JD Supra takes reasonable and appropriate precautions to insure that user information is protected from loss, misuse and unauthorized access, disclosure, alteration and destruction. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. You should keep in mind that no Internet transmission is ever 100% secure or error-free. Where you use log-in credentials (usernames, passwords) on our Website, please remember that it is your responsibility to safeguard them. If you believe that your log-in credentials have been compromised, please contact us at .
Children's Information
Our Website and Services are not directed at children under the age of 16 and we do not knowingly collect personal information from children under the age of 16 through our Website and/or Services. If you have reason to believe that a child under the age of 16 has provided personal information to us, please contact us, and we will endeavor to delete that information from our databases.
Links to Other Websites
Our Website and Services may contain links to other websites. The operators of such other websites may collect information about you, including through cookies or other technologies. If you are using our Website or Services and click a link to another site, you will leave our Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We are not responsible for the data collection and use practices of such other sites. This Policy applies solely to the information collected in connection with your use of our Website and Services and does not apply to any practices conducted offline or in connection with any other websites.
Information for EU and Swiss Residents
JD Supra's principal place of business is in the United States. By subscribing to our website, you expressly consent to your information being processed in the United States.
Our Legal Basis for Processing: Generally, we rely on our legitimate interests in order to process your personal information. For example, we rely on this legal ground if we use your personal information to manage your Registration Data and administer our relationship with you; to deliver our Website and Services; understand and improve our Website and Services; report reader analytics to our authors; to personalize your experience on our Website and Services; and where necessary to protect or defend our or another's rights or property, or to detect, prevent, or otherwise address fraud, security, safety or privacy issues. Please see Article 6(1)(f) of the E.U. General Data Protection Regulation ("GDPR") In addition, there may be other situations where other grounds for processing may exist, such as where processing is a result of legal requirements (GDPR Article 6(1)(c)) or for reasons of public interest (GDPR Article 6(1)(e)). Please see the "Your Rights" section of this Privacy Policy immediately below for more information about how you may request that we limit or refrain from processing your personal information.
Your Rights
Right of Access/Portability: You can ask to review details about the information we hold about you and how that information has been used and disclosed. Note that we may request to verify your identification before fulfilling your request. You can also request that your personal information is provided to you in a commonly used electronic format so that you can share it with other organizations.
Right to Correct Information: You may ask that we make corrections to any information we hold, if you believe such correction to be necessary.
Right to Restrict Our Processing or Erasure of Information: You also have the right in certain circumstances to ask us to restrict processing of your personal information or to erase your personal information. Where you have consented to our use of your personal information, you can withdraw your consent at any time.
You can make a request to exercise any of these rights by emailing us at or by writing to us at:
Privacy Officer
10 Liberty Ship Way, Suite 300
Sausalito, California 94965
You can also manage your profile and subscriptions through our Privacy Center under the " My Account " dashboard.
We will make all practical efforts to respect your wishes. There may be times, however, where we are not able to fulfill your request, for example, if applicable law prohibits our compliance. Please note that JD Supra does not use "automatic decision making" or "profiling" as those terms are defined in the GDPR.
Timeframe for retaining your personal information: We will retain your personal information in a form that identifies you only for as long as it serves the purpose(s) for which it was initially collected as stated in this Privacy Policy, or subsequently authorized. We may continue processing your personal information for longer periods, but only for the time and to the extent such processing reasonably serves the purposes of archiving in the public interest, journalism, literature and art, scientific or historical research and statistical analysis, and subject to the protection of this Privacy Policy. For example, if you are an author, your personal information may continue to be published in connection with your article indefinitely. When we have no ongoing legitimate business need to process your personal information, we will either delete or anonymize it, or, if this is not possible (for example, because your personal information has been stored in backup archives), then we will securely store your personal information and isolate it from any further processing until deletion is possible.
Onward Transfer to Third Parties: As noted in the "How We Share Your Data" Section above, JD Supra may share your information with third parties. When JD Supra discloses your personal information to third parties, we have ensured that such third parties have either certified under the EU-U.S. or Swiss Privacy Shield Framework and will process all personal data received from EU member states/Switzerland in reliance on the applicable Privacy Shield Framework or that they have been subjected to strict contractual provisions in their contract with us to guarantee an adequate level of data protection for your data.
California Privacy Rights
Pursuant to Section 1798.83 of the California Civil Code, our customers who are California residents have the right to request certain information regarding our disclosure of personal information to third parties for their direct marketing purposes.
You can make a request for this information by emailing us at or by writing to us at:
Privacy Officer

Read the rest of this article here