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ARE DISCONTINUED FRINGE BENEFITS TO BE ADDED TO THE CASH AVERAGE WEEKLY WAGE TO DETERMINE PARTIAL WAGE LOSS BENEFITS?

The Michigan Supreme Court, in a 5-2 decision, Schmaltz v Troy Metal Concepts, Inc., issued on December 23, 2003, held that, where plaintiff’s average weekly wage on the date of injury was greater than two-thirds of the state average weekly wage, the employee’s discontinued fringe benefits were not to be added to the average weekly wage calculation for purposes of determining partial wage loss in subsequent employment where the partial wage loss benefit was less than two-thirds of the state average weekly wage. The Court held that the average weekly wage that is used to establish benefit entitlement is determined at the time of injury and may not be subsequently recalculated, even where the partial benefit rate is less than two-thirds of the state average weekly wage. The Supreme Court adopted the Workers’ Compensation Appellate Commission’s analysis in Karczewski v General Motors Corp., 1994 Mich ACO 613 (1995).

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