The Notice of Compensation Payable referred to in Survival Tip #1 also includes the injured worker's average weekly wage. The workers' compensation insurance company calculates the average weekly wage by using one of several possible formulas, which are selected depending on the injured worker's individual circumstances. The average weekly wage should include salary and/or hourly wages, overtime, and bonuses. It may be adjusted for seasonal employment and should include income from other employment.

However, as stated above, the average weekly wage is calculated by the workers' compensation insurance company, and mistakes in calculating the average weekly wage are often made. The injured worker should receive a document, filed with the Department of Labor and Industry by the workers' compensation insurance company, called a Statement of Wages.

This document shows how the workers' compensation insurance company calculated the injured worker's average weekly wage. The average weekly wage is very important because it is the basis from which the injured worker's weekly nontaxable workers' compensation benefit is calculated. In most instances, an injured worker should receive 66 2/3% of his average weekly wage. Therefore, the Statement of Wages form and the calculations made by the workers' compensation insurance company should be double-checked! Failure to review the calculations may result in an underpayment to an injured worker that goes undiscovered. We at The Workers' Compensation Institute routinely review these calculations to ensure that you receive your maximum benefit.