Average Weekly Wage

What is Average Weekly Wage (AWW) and is it important?

Average weekly wage is exactly what it sounds like. It is the average weekly wage an employee was earning on the date of injury. At a fundamental level, the purpose of the wage determination is to arrive at a fair approximation of the employee’s earning power at the time of injury.

To an injured worker, the average weekly wage determination is extremely important. Weekly wage loss benefits are determined by the average weekly wage. The greater the average weekly wage, the more weekly compensation will be paid. Temporary total disability compensation is paid at 2/3 of the average weekly wage. An employee with an average weekly wage of $600 receives $400 a week for temporary total disability benefits. An employee with an average weekly wage of $900 receives $600.

How is the Average Weekly Wage Calculated?

This is a very good question and subject to argument on a case by case basis. In the majority of cases, it is calculated by adding up the employee’s gross earnings during the 26 weeks prior to the date of injury and then dividing it by 26 weeks. Although this should be simple, insurers may incorrectly exclude certain types of earnings when making their own average weekly wage determinations or not advise injured workers of the types of earnings that could be included in the average weekly wage determination. For example, if an employee is working two jobs at the time of the injury, earnings from both jobs are used to determine the average weekly wage. Earned PTO, fringe benefits, and bonuses are also included in the average weekly wage. Another commonly overlooked earning is regular overtime pay. If you think that your average weekly wage isn’t high enough, you should contact a work comp attorney and get some advice.