Mich. Comp. Laws » Michigan Compiled Laws / Chapter 418 / Act 317 of 1969
Michigan Compiled Laws

Mich. Comp. Laws § 418.371 (2026)

Weekly loss in wages; average weekly wage.

✓ current as of July 2026
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WORKER'S DISABILITY COMPENSATION ACT OF 1969


Act 317 of 1969


418.371 Weekly loss in wages; average weekly wage.

Sec. 371.

    (1) The weekly loss in wages referred to in this act shall consist of the percentage of the average weekly earnings of the injured employee computed according to this section as fairly represents the proportionate extent of the impairment of the employee's earning capacity in the employments covered by this act in which the employee was working at the time of the personal injury. The weekly loss in wages shall be fixed as of the time of the personal injury, and determined considering the nature and extent of the personal injury. The compensation payable, when added to the employee's wage earning capacity after the personal injury in the same or other employments, shall not exceed the employee's average weekly earnings at the time of the injury.

    (2) As used in this act, "average weekly wage" means the weekly wage earned by the employee at the time of the employee's injury in all employment, inclusive of overtime, premium pay, and cost of living adjustment, and exclusive of any fringe or other benefits which continue during the disability. Any fringe or other benefit which does not continue during the disability shall be included for purposes of determining an employee's average weekly wage to the extent that the inclusion of the fringe or other benefit will not result in a weekly benefit amount which is greater than 2/3 of the state average weekly wage at the time of injury. The average weekly wage shall be determined by computing the total wages paid in the highest paid 39 weeks of the 52 weeks immediately preceding the date of injury, and dividing by 39.

    (3) If the employee worked less than 39 weeks in the employment in which the employee was injured, the average weekly wage shall be based upon the total wages earned by the employee divided by the total number of weeks actually worked. For purposes of this subsection, only those weeks in which work is performed shall be considered in computing the total wages earned and the number of weeks actually worked.

    (4) If an employee sustains a compensable injury before completing his or her first work week, the average weekly wage shall be calculated by determining the number of hours of work per week contracted for by that employee multiplied by the employee's hourly rate, or the weekly salary contracted for by the employee.

    (5) If the hourly earning of the employee cannot be ascertained, or if the pay has not been designated for the work required, the wage, for the purpose of calculating compensation, shall be taken to be the usual wage for similar services if the services are rendered by paid employees.

    (6) If there are special circumstances under which the average weekly wage cannot justly be determined by applying subsections (2) to (5), an average weekly wage may be computed by dividing the aggregate earnings during the year before the injury by the number of days when work was performed and multiplying that daily wage by the number of working days customary in the employment, but not less than 5.

    (7) The average weekly wage as determined under this section shall be rounded to the nearest dollar.

History: 1969, Act 317, Eff. Dec. 31, 1969 ;-- Am. 1980, Act 357, Eff. Jan. 1, 1982 ;-- Am. 1981, Act 192, Eff. Mar. 31, 1982 ;-- Am. 1982, Act 32, Imd. Eff. Mar. 10, 1982

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Act 317

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Heart and Lung Act
Notes of Decisions
Cited in 87 cases, 1971–2016 · leading case: Rowell v. Sec. Steel Processing Co., 445 Mich. 347 (Mich. 1994).
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Rowell v. Sec. Steel Processing Co., 445 Mich. 347 (Mich. 1994). · cites it 14× “[MCL 418.371; MSA 17.237(371).] Chappell v Hall Electric (Docket No.”
Powell v. Casco Nelmor Corp., 279 N.W.2d 769 (Mich. 1979). · cites it 8× “" MCL 418.371; MSA 17.237(371). (Emphasis added.”
Lahay v. Hastings Lodge No 1965 Bpoe, 247 N.W.2d 817 (Mich. 1976). · cites it 10× “In doing so, the court began by determining plaintiff's average weekly wage according to MCLA 418.371; MSA 17.237(371). The statute reads: *472 "(1) The weekly loss in wages referred to in this act shall consist of such percentage of the average weekly earnings of the injured…”
Gusler v. Fairview Tubular Prods., 315 N.W.2d 388 (Mich. 1981). · cites it 4× “[11] Such a result hardly comports with the declared policy of the Worker's Disability Compensation Act to compensate workers for their loss of wage-earning *297 capacity, MCL 418.371(1); MSA 17.237(371)(1), unless we adopt the wholly unwarranted fiction that all workers in a…”
Sobotka v. Chrysler Corp., 523 N.W.2d 454 (Mich. 1994). · cites it 4× “[12] MCL 418.371; MSA 17.237(371). [13] Ante, p 29.”
Schmaltz v. Troy Metal Concepts, Inc, 673 N.W.2d 95 (Mich. 2003). · cites it 5× “313(1), which establishes how the “after-tax” determination is made, and MCL 418.371, which establishes how the “average weekly wage” is calculated.”
Smitter v. Thornapple Twp., 833 N.W.2d 875 (Mich. 2013). · cites it 2× “See MCL 418.371(2) (defining “average weekly wage” as “the weekly wage earned by the employee at the time of the employee’s injury in all employment .”
Lydy v. Trustaff, Inc./Wausau Ins. Co., 2013 VT 44 (Vt. 2013). · cites it 2× “§44-511 (a)(2)(ii) (expressly including employer-provided insurance in definition of wage); Mich. Comp. Laws Ann. § 418.371 (2) (including fringe benefits not continued during disability in calculation of average weekly wage, subject to cap).”
Bower v. Whitehall Leather Co., 312 N.W.2d 640 (Mich. 1981). · cites it 2× “KAVANAGH, WILLIAMS, LEVIN, and FITZGERALD, JJ., concurred with BLAIR MOODY, JR.”
Toth v. Autoalliance Int'l, Inc, 635 N.W.2d 62 (Mich. Ct. App. 2001). · cites it 12× “In so doing, [this Court] is to specifically consider which section of MCL 418.371; MSA 17.237(371) applies to the calculation of the plaintiff’s average weekly wage.”
Leskinen v. Emp. Sec. Comm'n, 247 N.W.2d 808 (Mich. 1976). · cites it 4× “” Plaintiff argues that the board improperly relied on the limiting language of MCLA 418.371; MSA 17.237(371) in determining whether' he suffered a work-related injury.”
Tyler v. Livonia Pub. Schs., 590 N.W.2d 560 (Mich. 1999). · cites it 2× “[8] MCL 418.371; MSA 17.237(371). [9] United States Supreme Court Justice Antonin Scalia has clarified the meaning of this rule by the example he uses in his recent book, A Matter of Interpretation.”
Show all 87 citing cases →
— Mich. Comp. Laws § 418.371(1) — 25 cases
Powell v. Casco Nelmor Corp., 279 N.W.2d 769 (Mich. 1979). “" MCL 418.371; MSA 17.237(371). (Emphasis added.”
Gusler v. Fairview Tubular Prods., 315 N.W.2d 388 (Mich. 1981). “[11] Such a result hardly comports with the declared policy of the Worker's Disability Compensation Act to compensate workers for their loss of wage-earning *297 capacity, MCL 418.371(1); MSA 17.237(371)(1), unless we adopt the wholly unwarranted fiction that all workers in a…”
Lahay v. Hastings Lodge No 1965 Bpoe, 247 N.W.2d 817 (Mich. 1976). “In doing so, the court began by determining plaintiff's average weekly wage according to MCLA 418.371; MSA 17.237(371). The statute reads: *472 "(1) The weekly loss in wages referred to in this act shall consist of such percentage of the average weekly earnings of the injured…”
Sobotka v. Chrysler Corp., 523 N.W.2d 454 (Mich. 1994). “[12] MCL 418.371; MSA 17.237(371). [13] Ante, p 29.”
Leizerman v. First Flight Freight Serv., 354 N.W.2d 351 (Mich. Ct. App. 1984).
— Mich. Comp. Laws § 418.371(2) — 18 cases
Smitter v. Thornapple Twp., 833 N.W.2d 875 (Mich. 2013). “See MCL 418.371(2) (defining “average weekly wage” as “the weekly wage earned by the employee at the time of the employee’s injury in all employment .”
Schmaltz v. Troy Metal Concepts, Inc, 673 N.W.2d 95 (Mich. 2003). “313(1), which establishes how the “after-tax” determination is made, and MCL 418.371, which establishes how the “average weekly wage” is calculated.”
Rowell v. Sec. Steel Processing Co., 445 Mich. 347 (Mich. 1994). “[MCL 418.371; MSA 17.237(371).] Chappell v Hall Electric (Docket No.”
Lawrence v. Toys R US, 551 N.W.2d 155 (Mich. 1996).
Rahman v. Detroit Bd. of Educ., 627 N.W.2d 41 (Mich. Ct. App. 2001).
— Mich. Comp. Laws § 418.371(3) — 10 cases
Rowell v. Sec. Steel Processing Co., 445 Mich. 347 (Mich. 1994). “[MCL 418.371; MSA 17.237(371).] Chappell v Hall Electric (Docket No.”
Toth v. Autoalliance Int'l, Inc, 635 N.W.2d 62 (Mich. Ct. App. 2001). “In so doing, [this Court] is to specifically consider which section of MCL 418.371; MSA 17.237(371) applies to the calculation of the plaintiff’s average weekly wage.”
Neff v. Hillcrest Drive-In, 250 N.W.2d 71 (Mich. Ct. App. 1976).
Tagliavia v. Barton Malow Co., 463 N.W.2d 116 (Mich. Ct. App. 1990).
Irvan v. Borman’s, Inc, 315 N.W.2d 521 (Mich. 1982).
— Mich. Comp. Laws § 418.371(4) — 4 cases
Solakis v. Roberts, 233 N.W.2d 1 (Mich. 1975).
Rowell v. Sec. Steel Processing Co., 445 Mich. 347 (Mich. 1994). “[MCL 418.371; MSA 17.237(371).] Chappell v Hall Electric (Docket No.”
Tagliavia v. Barton Malow Co., 463 N.W.2d 116 (Mich. Ct. App. 1990).
Eric D Moore v. Nolff's Constr. (Mich. Ct. App. 2015).
— Mich. Comp. Laws § 418.371(5) — 1 case
Rowell v. Sec. Steel Processing Co., 445 Mich. 347 (Mich. 1994). “[MCL 418.371; MSA 17.237(371).] Chappell v Hall Electric (Docket No.”
— Mich. Comp. Laws § 418.371(6) — 6 cases
Rowell v. Sec. Steel Processing Co., 445 Mich. 347 (Mich. 1994). “[MCL 418.371; MSA 17.237(371).] Chappell v Hall Electric (Docket No.”
Tagliavia v. Barton Malow Co., 463 N.W.2d 116 (Mich. Ct. App. 1990).
Stone v. RW Lapine, Inc, 764 N.W.2d 574 (Mich. 2009).
Toth v. Autoalliance Int'l, Inc, 635 N.W.2d 62 (Mich. Ct. App. 2001). “In so doing, [this Court] is to specifically consider which section of MCL 418.371; MSA 17.237(371) applies to the calculation of the plaintiff’s average weekly wage.”
Robert G Florian v. Gary Grimm (Mich. Ct. App. 2016).
— Mich. Comp. Laws § 418.371(7) — 1 case
Toth v. Autoalliance Int'l, Inc, 635 N.W.2d 62 (Mich. Ct. App. 2001). “In so doing, [this Court] is to specifically consider which section of MCL 418.371; MSA 17.237(371) applies to the calculation of the plaintiff’s average weekly wage.”
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