Michigan No-Fault Law, section by section › MCL 500.3107a
Basis of work loss for certain injured persons.
In plain terms
If the injured person was temporarily unemployed at the time of the accident or during the period of disability, work-loss benefits are based on earned income for the last month of full-time employment before the accident.
How this section works in practice
Work-loss benefits are based on what the injured person would have earned, which is easy to measure for someone with a steady job and hard for someone who was between jobs. Section 3107a supplies the rule for the second group: if the injured person was temporarily unemployed at the time of the accident or during the period of disability, work loss is based on earned income for the last month the person was employed full time before the accident.
"Temporarily" is the key word. Someone laid off two weeks before a crash, or between seasonal jobs, is typically covered; someone who had left the workforce for years generally is not, and insurers will contest the point. The benefit is still subject to everything in section 3107(1)(b): the 15% reduction, the monthly maximum and the three-year limit. Keep pay stubs, W-2s and any offer letters; the burden of proving the last full-time month's earnings is on the claimant.
Text of MCL 500.3107a
Sec. 3107a.
Subject to the provisions of section 3107(1)(b), work loss for an injured person who is temporarily unemployed at the time of the accident or during the period of disability shall be based on earned income for the last month employed full time preceding the accident.
History: Add. 1975, Act 311, Imd. Eff. Dec. 22, 1975 ;-- Am. 1991, Act 191, Eff. Jan. 1, 1992
Source: MCL 500.3107a at legislature.mi.gov (official text). Text as published in the 2025 Michigan Compiled Laws; reviewed by Koussan Law on September 15, 2026.
Sections this one refers to
- MCL 500.3107: What PIP Pays: Medical, Wage Loss, Services
Practice pages
Important: This is not legal advice
This article is general information about Michigan personal injury law. It is not legal advice and should not be relied on as a substitute for consultation with a licensed Michigan attorney about your specific situation. The laws, deadlines, procedures, and frameworks here are general guidelines that may or may not apply to your case.
Every personal injury case turns on its own unique facts. The timing, the parties, the evidence, the jurisdiction, the insurance available, and dozens of other variables can change the legal analysis. Do not rely on anything written on this website to make decisions about your case.
If you have been injured in Michigan, the only responsible step is to speak with a licensed Michigan attorney about your specific facts. Call Koussan Law at (313) 800-0000 for a free consultation, or contact a different Michigan personal injury attorney of your choosing.
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