KW Economics prepares lost earnings analysis for workers' compensation cases venued in Michigan: what the loss claim consists of, the records that drive it, and a present value built to Michigan damages rules and venues. Plaintiff and defense.
Workers' compensation matters ask the lost earnings question in more than one setting: the wage loss or reduced earning capacity that the benefit is meant to replace, the present value of future indemnity payments at issue in a settlement, and the full earnings loss in a third-party action arising from the same injury. The economist assembles the pre-injury wage base from the employer's records and tax documents, establishes the post-injury earnings path from actual earnings or the work-capacity opinions, and measures the loss over the applicable worklife with wage growth. The report separates what the compensation system pays from what a civil claim adds so the same facts support both.
Past and future lost earnings and fringe benefits for a person whose injury has removed them from work or reduced what they can earn. The analysis builds from the earnings history, projects the but-for path over the person's expected worklife with wage growth, and discounts the future stream to present value. When the person can still work in a reduced capacity, the loss is framed as diminished earning capacity, with the post-injury path drawn from a vocational opinion or the treating record and offset against the but-for projection.
In a settlement, the present value of a long stream of indemnity payments is the central figure, and the discount rate and the claimant's life or worklife expectancy control it. In a third-party action the exposure resembles any personal injury claim, with the added task of identifying the benefits already paid so the lien and offset questions counsel raises can be answered from the same numbers. Where the benefit turns on earning capacity, the gap between pre-injury wages and what the person can now earn is the contested figure, and the post-injury wage level is the assumption that moves it.
Michigan courts require the trial judge to act as gatekeeper for expert testimony, asking whether the economist is qualified, whether the opinion rests on sufficient facts and reliable principles and methods, and whether those methods were applied reliably to the case. A damages report meets that inquiry by naming the published source behind every assumption and tying each to the record.
Highest court: Michigan Supreme Court. Court system: courts.michigan.gov.
Federal venues: Eastern District of Michigan, Western District of Michigan.
Compensation forum: Michigan Workers' Disability Compensation Agency. Third-party actions arising from the same injury proceed in the civil courts listed above, and the report separates what the compensation system pays from what the civil claim adds.
Michigan's wrongful death act gathers the survival and death claims into a single action: the estate recovers the decedent's conscious pain and suffering and medical and funeral expenses, and the surviving family recovers lost financial support, services, society, and companionship. Awards are reduced after verdict by collateral-source payments other than those subject to a lien, a plaintiff whose fault exceeds half loses noneconomic damages while economic damages are only reduced, the court reduces future damages to present value under a statutory formula, and interest on the judgment runs from the filing of the complaint.
We issue the final report in disclosure-ready form and provide deposition and trial testimony, rebuttal of opposing economic opinions, and updated calculations as new records arrive.
The same four steps apply to a workers' compensation case venued in Michigan; the damages framework above decides which components enter the total. Assemble the pre-injury wage base from the employer's records and tax documents. Establish the post-injury earnings path from actual earnings or the work-capacity opinions, and measure the loss over the applicable worklife with wage growth. Value future indemnity streams with stated mortality and discount assumptions, and grow and discount future medical by category when a treatment projection exists. Separate the amounts the compensation system pays from the components a third-party claim adds, and reconcile the two so the same facts support both.
Michigan courts require the trial judge to act as gatekeeper for expert testimony, asking whether the economist is qualified, whether the opinion rests on sufficient facts and reliable principles and methods, and whether those methods were applied reliably to the case. A damages report meets that inquiry by naming the published source behind every assumption and tying each to the record. Workers' Compensation claims in Michigan proceed before the Michigan Workers' Disability Compensation Agency, and third-party actions arising from the same injury are heard in the Circuit Court (General jurisdiction; larger civil cases, felonies, domestic relations), with final appeals to the Michigan Supreme Court. Matters within federal jurisdiction proceed in the Eastern District of Michigan and Western District of Michigan.
Michigan's wrongful death act gathers the survival and death claims into a single action: the estate recovers the decedent's conscious pain and suffering and medical and funeral expenses, and the surviving family recovers lost financial support, services, society, and companionship. Awards are reduced after verdict by collateral-source payments other than those subject to a lien, a plaintiff whose fault exceeds half loses noneconomic damages while economic damages are only reduced, the court reduces future damages to present value under a statutory formula, and interest on the judgment runs from the filing of the complaint. The report presents past and future amounts separately, states every rate and table with its source, and shows the result under the alternatives the other side is likely to argue, so counsel can apply the Michigan rules to a documented figure.
Request a consultation on Lost Earnings or call (201) 343-0700. Plaintiff and defense counsel.