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Economic Damages

Lost Wages in a Michigan Personal Injury Claim

If an injury caused by another party's negligence forced you out of work in Michigan, you can recover lost wages and future earning capacity as part of your claim. Here is exactly how to document, calculate, and recover your income losses.

For informational purposes only. Not legal advice. Consult a licensed attorney.

Modified comparative fault (51% bar)

Fault System

3 years

Filing Deadline

No-Fault

Auto System

What Lost Wages You Can Recover in Michigan

Past Lost Wages

All income you lost from the date of the accident through settlement or verdict — including salary, hourly wages, tips, commissions, bonuses, and self-employment income.

Future Lost Earnings

If your injury causes permanent or long-term disability affecting your ability to work, you can recover the present value of future income losses. Expert economic testimony is typically required.

Lost Business Income

Self-employed individuals and business owners can claim documented lost profits caused by their inability to work.

Benefits & PTO Used

Sick days, vacation days, and other benefits consumed due to your injury may be recoverable as lost wages.

No-Fault vs At-Fault in Michigan

Michigan is a no-fault auto insurance state. Your own insurer's Personal Injury Protection (PIP) covers a portion of your lost wages — typically 60–80% up to your policy limit — regardless of who caused the accident. Once you exceed your PIP limits or meet the serious injury threshold, you can pursue the at-fault driver for additional lost wages.

Michigan Injury Law

Michigan historically had the most generous no-fault auto insurance system in the country, with unlimited PIP benefits for catastrophic injuries. The 2019 reform (PA 21) allowed drivers to select lower PIP levels or opt out if covered by Medicare, trading some protections for lower premiums. Third-party tort lawsuits against at-fault drivers require meeting a serious impairment of body function threshold. Michigan applies modified comparative fault with a 51% bar for tort claims. The statute of limitations is 3 years for personal injury, with a separate 1-year limit for PIP benefits. Michigan's automotive industry history creates significant product liability and workers' compensation litigation. The Michigan Catastrophic Claims Association (MCCA) funds unlimited PIP for catastrophic injuries above a per-claimant threshold. Medical malpractice claims in Michigan have a 2-year statute of limitations and require an affidavit of merit. Noneconomic damages in malpractice cases are capped under MCL § 600.1483.

Legal Injury GuideFor informational purposes only. Not legal advice. Consult a licensed attorney.