Temporary Unemployment and Lost Wages

Temporary Unemployment and Lost Wages

Posted on:
March 01, 2016
Auto Accident
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Car accidents happen on Michigan roads every day. For accident victims, dealing with the aftermath can be complicated and frustrating. Often, accident victims suffer injuries. These can range from minor scrapes to serious injuries that require extensive physical therapy. These injuries can mean that an accident victim is eligible to receive compensation for medical bills, emotional distress, and lost wages. If you are unemployed, you might think it is not possible to recover lost wages as part of your claim. Depending on the length of your unemployment, you may be able to recover lost wages. This article will explain how and when an unemployed person is eligible to recover lost wages after an accident.

Under Michigan’s No Fault Automobile Insurance Act, it is possible for unemployed individuals who are injured in accidents to collect wages and loss benefits following their accidents. In an ideal scenario, you were in the process of using online tools to begin your job search. But now, the accident could prevent you from fully engaging in your search. Under Michigan law, you may claim wage loss at a rate of $10 per hour for 20 hours per week during the time that you were disabled because of your accident. This is true even if you did not have a job at the time of the accident. This is because you qualify as a “temporarily unemployed person” under the law. As such, you are entitled to receive wages and loss benefits.

How can I Demonstrate I am a “Temporarily Unemployed Person?

Before you are able to collect lost wages, you must demonstrate to an insurance company that you qualify as a temporarily unemployed person. In order to do this, you must have proof that you were actively seeking employment and some proof of your prior employment. Proof of your prior employment can be provided with:

  • A W2 Form;
  • A recent tax return;
  • An employment verification letter; or
  • A copy of your last pay stub.

There are Limits to the Temporarily Unemployed Status

Michigan courts have limited the timeframe under which accident victims may claim they were “temporarily unemployed.” This interpretation means that you if you were unemployed for three months before the crash, you will likely qualify for wage loss benefits. However, if you have been out of work for several years prior to the accident, then you may not be able to claim loss wages as a temporarily unemployed person.

Let a Flint Personal Injury Attorney Help You

Dealing with an accident is complex whether you are employed or unemployed. You might just need to take a few extra steps to ensure you are able to claim lost wages if you are unemployed before an accident. If you have been in an accident and you are having difficulties making a claim for lost wages because of your employment status before an accident, then you should contact the Flint personal injury attorneys at Nickola Law. We can review the facts of your case and determine whether you qualify as a temporarily unemployed status. Please contact us today at to schedule an initial consultation.


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