If you are injured at work and are forced to miss some time while you recover, you can file a workers’ compensation claim and collect compensation for your medical expenses and lost wages. In Minnesota, you can collect two-thirds of your weekly earnings in a lost wages claim, but unless you’re a salaried employee or you work the same amount of hours each week, it can be difficult to figure out how much you are owed in a lost wages claim. Below, we take a closer look at how you can calculate your average weekly wage as it pertains to a wage loss claim.
Obstacles To Weekly Wages Calculation
There are millions of Americans who work jobs where their hours, wages and pay fluctuate on a regular basis. Here’s a quick look at some of the factors that can impact your average weekly wage calculation:
Tips and Gratuities – Working in the service industry oftentimes means your income is dependent on the tips you receive.
Season Work – If you are laid off part of the year, your income during these weeks will be vastly different than when you’re working.
Overtime – Perhaps you pick up overtime when it’s available, but can that added income be considered part of your average wages?
Room And Board – Some employees get reduced or free living expenses, like a resident advisor in college or a maintenance worker at an apartment complex. These are considered forms of payment that would be relevant to your wage loss claim.
Bonuses – Some workers earn monthly, quarterly or yearly bonuses as part of their pay, and these too need to be considered when determining average weekly wage.
So how can you ensure that your wage loss calculation accuracy reflects what you earn each week when your income can vary wildly? Since it is deemed an average weekly wage, it’s easier to look at a number of paychecks to help make this determination. In Minnesota, it’s common to look at 26 weeks (half a year) or 52 weeks (full year) of pay in order to determine what you make on a weekly basis.
For example, let’s say that you make $80,000 a year working construction, but that includes regular overtime and some time laid off in the winter. Instead of looking at your last paycheck or your last six paychecks, your workers’ compensation lawyer will likely take your income for that year and divide it by 52. Since there are 52 weeks in a year, dividing your annual income by 52 will give you an average weekly amount for that year. If you aren’t laid off but simply experiencing fluctuating paychecks, you may only need to add up your last 26 weeks worth of paychecks and divide by 26 in order to determine a fair amount for an average weekly income.
It’s always a good idea to work on these calculations on your end or with the help of a lawyer, because insurance companies are notorious for underestimating a person’s average weekly income. They may not always factor in tips, bonuses or overtime, so bring your own numbers to the table and be prepared to back them up with facts. Of course, this whole process is easier with a lawyer by your side.
If you’d like to connect with a legal team that can ensure your weekly wage calculation is fair and correct, reach out to the team at Hey Workers today at (844) 439-9675.
