Wage replacement benefits are one of the most important parts of a Florida workers’ compensation claim, but many injured workers are surprised to learn how those payments are actually calculated. The starting point for nearly every wage benefit calculation is a figure known as the Average Weekly Wage, or AWW.
The Average Weekly Wage is meant to reflect what an injured worker was typically earning before the accident. Florida law generally calculates this figure by looking at the 13 weeks of pay immediately before the date of injury, though the exact method can vary depending on how long someone has worked at their job and how their pay is structured.
For workers who have been employed for the full 13 weeks before the injury, the calculation typically averages the gross wages earned during that period. For newer employees who have not worked a full 13 weeks, Florida law provides alternative methods, including comparing pay to a similar employee who has worked the full period, or using an estimate based on the wage the employee was hired to earn.
Average Weekly Wage calculations are not limited to base hourly pay or salary. Overtime, bonuses, commissions, and the value of certain fringe benefits, such as employer-provided health insurance, may also factor into the calculation depending on the circumstances. Workers who held more than one job at the time of the accident may, in some situations, be able to include wages from a concurrent employer as well.
Once the Average Weekly Wage is established, it becomes the foundation for calculating Temporary Total Disability, Temporary Partial Disability, and permanent impairment benefits, each of which is generally paid as a percentage of the AWW, subject to statutory minimums and maximums that change periodically. Even a modest error or dispute over the correct AWW can result in a meaningful difference in benefits over the life of a claim.
Insurance carriers sometimes calculate the Average Weekly Wage using an incomplete wage history, excluding overtime or bonuses that should be included, or overlooking a second job. Workers with irregular schedules, seasonal work, or recent raises are particularly likely to see disputes over what their true average earnings should be.
Because this single number affects every wage-related benefit throughout a claim, it is worth reviewing carefully rather than assuming the insurance carrier’s initial calculation is correct. Pay stubs, tax records, and employer wage statements can all help verify whether the figure being used reflects actual earnings.
Attorney William A. Heller has helped injured workers across South Florida review, and when necessary, challenge Average Weekly Wage calculations that did not reflect their true earnings. Anyone unsure whether their wage benefits are being calculated correctly may benefit from having the numbers reviewed by an experienced attorney.