Work Loss Benefits Less Than Expected

Written by Steven Matz on . Posted in .

This is why your work loss benefits may be less than you expected in Michigan.

“Why is my no-fault wage loss check not as much as I was making at work?”

  1. The No-Fault Act allows the insurance company to reduce its wage loss payment to an injured person by 15%. In other words, you will get 85% of your gross (before tax) earnings for as long as you can prove that you are disabled due to the accident.

The 15% is taken out because you would normally be paying taxes on your wages. The amount you get from the no-fault carrier is not taxable to you. If you can prove that you were in a tax bracket less than 15%, you would get your full wage minus the percentage tax bracket you were in.

Remember, your insurance company has the right to decide on its own whether you are disabled because of the accident. The insurance company may cut you off from wages and other benefits, such as medical coverage, even if your doctor believes you are still disabled. Many lawsuits arise between injured people and their insurance companies over whether a claimant is truly entitled to continuing insurance payments.

Keep In Mind On Wage Loss Claims

You should also keep in mind that there is a three year time limit on no-fault wage loss claims, and there is a monthly maximum you can receive, no matter how much you earn. Attorneys who work on auto accident cases will be able to tell you more about how these benefits and limitations work.


Contact us through our contact form or call 1-866-22Not33 to speak with an attorney about your work loss claim.

Source: MCL 500.3107(1)(b)

Steven Matz

Written By Steven Matz

Steven Matz
Steven J. Matz is a founding shareholder of Matz Injury Law. The firm’s concentration is on personal injury litigation, with an emphasis on traumatic brain injury. Mr. Matz earned a Bachelor of Arts degree with high distinction and highest honors in 1974 from the University of Michigan and a Juris Doctor degree in 1977 from The George Washington University National Law Center. Mr. Matz lectures and publishes in a number of areas, including ethics, marketing, trial tactics, and head injury. Mr. Matz has served on the Michigan Association for Justice Executive Board and currently serves the Michigan Attorney Discipline Board as a Hearing Panel Chairman and Master. He is also a member of the State Bar Committee for Character and Fitness.
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The maximum contingency fee permitted by law is actually 33 1/3%. Michigan court rules require that the attorney fee be computed on the net sum recovered after deducting all disbursements properly chargeable to the enforcement of the claim.

What does 22not33 mean, exactly?

We can charge 22% while virtually all other injury attorneys charge 33 1/3% because we are very, very, good at obtaining results for our clients. 

We do not spend millions of dollars on television ads; instead, we offer a lower fee to all our clients.  We do not have dozens of lower paid associates handling our work. All our clients are represented by Steven and Jared Matz. Steven Matz started the firm in 1977 and since then has dedicated his life to representing injury victims.  Jared joined the firm in 2016 but grew up listening to stories, discussing theories, and generally learning at the dinner table about how to effectively and compassionately represent injury victims. Jared Matz was literally born to represent individuals involved in motor vehicle crashes.

All of our cases are handled on a contingency fee and all our cases are handled at 22%. Whether the case settles or goes through trial, the fee does not change. While our competitors make excuses as to why they charge so much, we are obtaining results for our clients at a lower fee.

At a typical television advertising law firm, your first call will be handled by a receptionist, who may refer you to an intake person, who will discuss your claim with an intake manager, who then discusses your claim with an associate, who may then report to a partner. You may never speak with the person whose name is at the top of the letterhead. At Matz Injury Law you will always speak with either Steven Matz or Jared Matz.

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