1. Wage-loss benefits
Wage-loss benefits are the core of a Michigan workers' comp claim. Under MCL 418.351, an injured worker with a total disability receives 80% of their after-tax average weekly wage . The weekly rate is subject to a statutory maximum equal to 90% of the state average weekly wage set each year by the Workers' Disability Compensation Agency.
How your average weekly wage is calculated
- Highest 39 of the last 52 weeks of gross earnings before the injury under MCL 418.371.
- Overtime, premium pay, and bonuses are included.
- Discontinued fringe benefits — like health insurance the employer stops paying — are added to the wage.
- Second job wages can be added if the employer knew about the second job.
Adjusters routinely underpay the average weekly wage — leaving out overtime, missing fringe benefits, or using the wrong 39 weeks. Even a small error costs thousands over the life of a claim.
2. Medical benefits
Under MCL 418.315, your employer (or its insurer) must furnish all reasonable and necessary medical treatment for your work injury — for life, if that's how long the injury lasts. There are no co-pays, deductibles, or annual limits.
Covered treatment includes:
- Doctor visits, specialists, and second opinions.
- Hospital stays and emergency care.
- Surgery and post-surgical rehabilitation.
- Physical therapy, occupational therapy, chiropractic care.
- Prescription medication, injections, pain management.
- Imaging (MRI, CT, X-ray) and diagnostic testing.
- Prosthetics, braces, wheelchairs, and durable medical equipment.
- Home health care and attendant care when medically necessary.
For the first 28 days, your employer selects the treating physician. After 28 days, you can switch to a doctor of your own choosing.
3. Mileage reimbursement
You are entitled to reimbursement for the round-trip mileage between your home and any authorized medical appointment, physical therapy visit, prescription pickup, or independent medical exam. The mileage rate is set periodically by the Workers' Disability Compensation Agency.
Keep a written log: date, provider, address, and round-trip miles. Insurers only pay mileage that's documented and submitted.
4. Vocational rehabilitation
Under MCL 418.319, a worker who cannot return to their previous job because of the injury may be entitled to vocational rehabilitation — including job placement assistance, retraining, and up to 104 weeks of retraining services (with extensions available in some cases). A qualified rehabilitation specialist prepares a written plan designed to return you to gainful employment consistent with your restrictions.
5. Specific loss benefits
Michigan pays fixed additional benefits for permanent loss (or permanent loss of use) of specific body parts, on top of wage-loss benefits. MCL 418.361(2) assigns each body part a set number of weeks of benefits, including:
Specific-loss benefits are paid even if you return to work and are in addition to any wage-loss benefits you receive.
6. Death benefits
If a work injury or occupational disease causes a worker's death, MCL 418.321 provides weekly benefits to surviving dependents — typically a spouse and minor children. Death benefits are generally paid at the same 80%-of-after-tax-wage rate, up to 500 weeks from the date of death, with benefits to minor children extending until age 16 (or later, in some circumstances). Burial expenses of up to $6,000 are also covered.
What Michigan workers' comp does NOT pay
Workers' comp is a limited-benefit system by design. It does not pay for:
- Pain and suffering. Non-economic damages are not part of workers' comp.
- Full lost wages. You get 80% of after-tax wages, not 100% of gross.
- Punitive damages. Not available in a comp claim.
- Loss of consortium. A spouse cannot recover for lost companionship through comp.
These damages may be recoverable through a third-party civil claim if someone other than your employer contributed to the injury.
Not sure you're getting every benefit you're owed?
Call Jay Trucks & Associates. We'll audit your weekly rate, medical coverage, and mileage payments, and identify any specific loss or third-party claims you may be entitled to. Free consultation, no obligation.