15 Mar

Changes to Michigan Workers Compensation Act Nov. 2011

Wage Earning Capacity is Redefined.

“Wage earning capacity” is key to determining disability and entitlement to benefits under the Act. The revisions expand the term to include wages the employee earns, “or is capable of earning at a job reasonably available to that employee, whether or not wages are actually earned.” The provision also places an affirmative duty on a claimant to seek work reasonably available, taking into consideration the limitations from the work-related injury or disease.

Determining the amount of wages a claimant is capable of earning at a job reasonably available to him or her is likely to be a much litigated issue during the next few years. One potential interpretation is that a magistrate may reduce a claimant’s benefit rate if the magistrate finds the partially disabled worker has not made a good faith effort to find employment within his or her qualifications, training, and medical restrictions.Wage Earning Capacity is Redefined.