Michigan is called a "wage loss state." Workers Compensation wage loss benefits are not payable unless the claimant demonstrates that he has suffered a loss earning capacity due to an injury at work.
There are times, however, when a claimant can establish a new wage earning capacity. In that event, then he or she is not entitled to wage loss benefits.
How can an employer demonstrate that the claimant has established a new wage earning capacity? There are four factors:
To determine whether an employee established a new wage-earning capacity, the factors to consider include: (1) the severity of the injury; (2) the severity of the disability resulting from the injury; (3) the nature of the reasonable employment performed by the employee; and (4) the reasons for the loss of reasonable employment. Doom v Brunswick Corp, 211 Mich App 189, 194; 535 NW2d 244 (1995).