Proving Lost Wages After a Michigan Personal Injury Accident

A lost-wage claim needs evidence of both the income you would have earned and the injury-related reason you could not earn it. A doctor’s work restriction and an employer’s payroll record answer different parts of that question. Keep both from the beginning of the claim.

Distinguish no-fault work loss from a claim against another party

Michigan’s no-fault work-loss statute, MCL 500.3107, addresses income from work an injured person would have performed during the first three years after the accident. A 15% tax adjustment generally makes the benefit 85% of lost income, subject to statutory qualifications and a monthly maximum. The applicable maximum depends on the accident date; an old online dollar figure may be wrong for your claim.

A separate injury claim can involve other recoverable economic losses. Do not treat the PIP calculation as the value of every wage claim, or assume an injury automatically proves a permanent reduction in earning ability.

What an employed worker should collect

• Pay stubs and payroll history from before and after the accident, showing regular pay, overtime, commissions, and bonuses separately.
• An employer statement identifying the job, usual schedule, missed dates, rate of pay, and any light-duty work offered or performed.
• Medical documentation stating work restrictions and their dates, including changes during recovery.
• Records of sick leave, vacation time, disability payments, and other benefits used during the absence.
• Correspondence explaining a reduced schedule, accommodation, or inability to return to particular duties.

Variable income and self-employment require a clearer comparison

For commissions, seasonal work, or self-employment, organize tax returns, profit-and-loss statements, invoices, bank deposits, contracts, and cancelled jobs. Gross business revenue is not automatically personal lost income. Identify ongoing expenses, replacement-worker costs, and the work you personally could not perform.

Explain the comparison period rather than choosing only your best month. If business demand changed for reasons unrelated to the accident, separate that change from the effects of your injury. A consistent timeline makes the claim easier to evaluate and helps identify missing documents.

Future earning loss needs more than a projection

When restrictions continue, gather information about the actual job demands, available accommodations, training, and expected treatment. A future-loss evaluation may require medical, vocational, and financial evidence. A spreadsheet multiplying your former salary by years until retirement does not resolve those questions.

See our Michigan no-fault insurance claims page and PIP benefits questions for related coverage information. Send claim documents in a trackable way and keep the submission date and any written request for more information.

Discuss your claim with Logeman & Iafrate

For a free consultation, contact Logeman & Iafrate, P.C. or call (734) 994-0200. Bring the records described above so the conversation can focus on your accident, available coverage, and next steps.

This article provides general information, not legal advice. The applicable law, policy terms, and deadlines depend on the facts of your case.

Does PIP always replace my full paycheck?

No. Statutory adjustments and a monthly maximum apply. Coverage and the accident date must also be reviewed.

Can a self-employed person document lost income?

Yes. Organize tax and business records, identify the work lost because of the injury, and distinguish revenue from personal income.

What if I return to work on reduced hours?

Keep the updated medical restrictions, employer schedule, and payroll records. They help document the difference between your prior earnings and post-injury work.