Average weekly wage is computed from earnings during a defined lookback period, typically the fifty-two weeks before injury. Statutes specify what is included, which may cover overtime, bonuses, tips, and in some states the value of fringe benefits.
The compensation rate is a percentage of AWW subject to statutory minimums and maximums.
Alternative Names:
AWW, Pre-Injury Wage
Why it Matters?
Because every indemnity benefit derives from this figure, an error in the calculation compounds across the life of the claim and can produce substantial overpayment or underpayment. The recurring disputes involve seasonal and irregular earnings, concurrent employment, short-tenure workers with insufficient wage history, and whether particular compensation forms are includable. Verifying AWW from payroll records at claim setup is basic cost control.
Frequently Confused with
Related terms
Frequently asked questions
What earnings are included in average weekly wage?
How is AWW calculated for a short-tenure employee?
