Understanding what is meant by the term "Average Weekly Wage" in a workers' compensation context.
If you are injured at work and are receiving workers’ compensation benefits, it is important to understand the meaning of the term “average weekly wage” and to understand the impact your average weekly wage will have on your workers’ compensation case.
WHAT IS AVERAGE WEEKLY WAGEYour average weekly wage is what is used in determining the rate of income benefits that you are entitled to on a weekly basis. If you are entitled to income benefits, your benefit checks will be issued at a compensation rate of 2/3 of your average weekly wage up to a maximum compensation rate of $575.00.
HOW TO CALCULATE AVERAGE WEEKLY WAGEThere are 3 methods through which an employee's average weekly wage is calculated:
A) By taking an average your weekly earnings for the 13 weeks immediately preceding the date of your accident;
B) If you did not work substantially the whole of the 13 weeks preceding your accident, then your average weekly wage can be calculated by utilizing the wages of a similarly situated employee--that is someone who performs the same job as you earning the same amount of money;
C) Finally, if you did not work substantially the whole of the 13 weeks preceding that accident, and there are no similarly situated employees, then your average weekly wage can be calculated based upon your full time weekly wage--meaning that your average weekly wage would be calculated by multiplying your hourly rate of pay by the number of hours that you typically work in a week