Today’s topic is to review how the compensation rate is calculated.
It all starts with the Average Weekly Wage (AWW). The average weekly wage is based on an average of gross income earned in the 13 weeks preceding the accident, not counting the week in which the accident occurred. “Second job” wages may be included so long as taxes were paid on that income and the worker was a covered employee for workers’ compensation at the second job.
Special rules apply when the injured worker was not employed for a full 13 weeks preceding the accident. Sometimes a similar employee’s wages are used. If there are no similar employees, sometimes the “contract of hire” is used where the hourly rate is multiplied by the hours the employee typically worked.
In my experience, insurance companies will use whatever method saves them money and pays you less.
If you have any doubt as to the accuracy of your AWW, please contact me for a free consultation.
In our next post, we will discuss when Temporary Total Disability benefits (TTD) are paid and how they are calculated.