Average Weekly Wage – What’s that all about?

If you are injured at work in North Carolina, then you are entitled to Workers Comp benefits.  One of the most important calculations that you or your attorney will make at the beginning of your case is your “average weekly wage”.  Many people mistakenly believe that this amount is simply your stated weekly salary – but that’s not the whole truth.

Your average weekly wage includes a number of other inputs that the insurance company will conveniently leave out if they are allowed to calculate this number for you.  For example, your average weekly wage should include the following items:

  • Any overtime you have been paid
  • Mileage checks
  • Per diem checks
  • Tips
  • A value for the use of company vehicles
  • Any other item which comes to you as salary or pay in the form of either cash or goods (excluding health insurance or other benefits)

The reason this number is so important is because the Average Weekly Wage is used to calculate your weekly benefit checks if you are unable to work because of your injury.  The insurance company will pay you 2/3 of your Average Weekly Wage – so if this number is not correct, then you could be short-changing yourself hundreds, if not thousands of dollars over the course of your claim.  To make matters worse, if and when you go to mediation to resolve your claim, the insurance company will use the average weekly wage calculation to determine a potential lump sum payout amount.  The wrong calculation could lead to an artificially low settlement amount.

If you have questions about your average weekly wage, and feel that it is lower than it is supposed to be, then please call us at (919) 460-5422.  We would be happy to review this information with you so that the insurance company can get it right.

*In Most cases, the average weekly wage amount in improperly calculated in favor of the insurance company.  However, if you ask for a recalculation and you received too much compensation, then you run the risk of the insurance company either asking for a lump sum payment from you, or withholding checks until the arrearage is paid back.  For this reason, it is important that you consult with an attorney prior to requesting a recalculation of your average weekly wage.

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    One Response to Average Weekly Wage – What’s that all about?
    1. Jim Hart
      January 21, 2011 | 1:02 am

      I’m not sure I understand your question. Average Weekly Wage will vary based on the individual. Every person’s wage is different.

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    Trackback URL http://myworkerscomplawyernc.com/average-weekly-wage-whats-that-all-about/trackback/

    Average Weekly Wage – What’s that all about?

    If you are injured at work in North Carolina, then you are entitled to Workers Comp benefits.  One of the most important calculations that you or your attorney will make at the beginning of your case is your “average weekly wage”.  Many people mistakenly believe that this amount is simply your stated weekly salary – but that’s not the whole truth.

    Your average weekly wage includes a number of other inputs that the insurance company will conveniently leave out if they are allowed to calculate this number for you.  For example, your average weekly wage should include the following items:

    • Any overtime you have been paid
    • Mileage checks
    • Per diem checks
    • Tips
    • A value for the use of company vehicles
    • Any other item which comes to you as salary or pay in the form of either cash or goods (excluding health insurance or other benefits)

    The reason this number is so important is because the Average Weekly Wage is used to calculate your weekly benefit checks if you are unable to work because of your injury.  The insurance company will pay you 2/3 of your Average Weekly Wage – so if this number is not correct, then you could be short-changing yourself hundreds, if not thousands of dollars over the course of your claim.  To make matters worse, if and when you go to mediation to resolve your claim, the insurance company will use the average weekly wage calculation to determine a potential lump sum payout amount.  The wrong calculation could lead to an artificially low settlement amount.

    If you have questions about your average weekly wage, and feel that it is lower than it is supposed to be, then please call us at (919) 460-5422.  We would be happy to review this information with you so that the insurance company can get it right.

    *In Most cases, the average weekly wage amount in improperly calculated in favor of the insurance company.  However, if you ask for a recalculation and you received too much compensation, then you run the risk of the insurance company either asking for a lump sum payment from you, or withholding checks until the arrearage is paid back.  For this reason, it is important that you consult with an attorney prior to requesting a recalculation of your average weekly wage.

    Be Sociable, Share!
      One Response to Average Weekly Wage – What’s that all about?
      1. Jim Hart
        January 21, 2011 | 1:02 am

        I’m not sure I understand your question. Average Weekly Wage will vary based on the individual. Every person’s wage is different.

      Leave a Reply

      Wanting to leave an <em>phasis on your comment?

      Trackback URL http://myworkerscomplawyernc.com/average-weekly-wage-whats-that-all-about/trackback/