Calculating Average Weekly Wage

We are Illinois attorneys who give free legal guidance and attorney referrals. If you would like a free case review, please contact us at 312-346-5320. We cover all of Illinois.

In an Illinois workers’ compensation claim, one of the most important numbers is the injured worker’s average weekly wage, which is also known as AWW. This figure represents what the employee was earning before the injury and is used to calculate most of the benefits they will receive. Whether someone is being paid for time off work (TTD), a settlement (PPD), permanent disability, or other benefits, the AWW is the foundation for determining how much those payments will be.

The AWW matters because it directly impacts how much money an injured worker receives. Benefits such as temporary total disability (TTD) are calculated as a percentage of the worker’s AWW. If the AWW is calculated too low, every benefit linked to it will also be lower than it should be. Over time, even a small error in this number can cost an injured worker thousands of dollars. TTD is supposed to be 2/3 of your average weekly wage. If your actual AWW is $1,500, your TTD payments should be $1,000, tax free per week. If the insurance company only pays you at a $1,200 rate, your TTD would be $800 a week. If you are off for a year, you would be underpaid by over $10,000.00!

In most situations, the AWW is determined by looking at the employee’s earnings during the 52 weeks before the injury and dividing that total by the number of weeks actually worked. But the process is not always that simple. If the worker did not work a full year, had time off for reasons beyond their control, or had irregular hours, adjustments will need to be made. Overtime, bonuses, and second jobs can sometimes be included, depending on the circumstances. For some workers, like seasonal employees or those with changing schedules, there may be other methods used to arrive at a fair number.

There are several different ways the AWW can be calculated under Illinois law, and choosing the correct method is critical. For example, if a worker only recently started a job, wages from a similar employee may be considered. In other cases, periods where the employee missed work for reasons outside of their control (for example, weather-related shutdowns or layoffs) should be excluded from the calculation. In other words, instead of taking your gross pay and dividing by 52, it might be proper to divide by 48 weeks or whatever number was actually worked. That can make a huge difference in calculating the correct AWW. The goal is to reach a number that fairly represents what the worker actually earned for the weeks they worked.

Mistakes in calculating the AWW are not uncommon. Employers or insurance companies may leave out overtime or bonuses, fail to account for a second job, or incorrectly include weeks that should have been excluded. In some cases, they may use the wrong time period altogether. These errors often result in a lower AWW, which means lower benefit checks for the injured worker. Unfortunately, many people do not realize there is a problem until they have already been underpaid. A second job can make a huge difference in what your benefits are, but it is often wrongly excluded.

An experienced Illinois workers’ compensation attorney can make sure that you are being paid the most money possible. We have seen cases where mistakes in AWW calculation led to underpayment close to $100,000.  The good news is that this can be retroactively fixed. It is usually one of the first things a good attorney does when they take on your case. A lawyer will review pay records, tax documents, and employment history to make sure that all appropriate earnings are included and that the correct calculation method is used. If the insurance company disputes the AWW, an attorney can present evidence and argue for a more accurate figure at the Illinois Workers’ Compensation Commission.

Getting the AWW right is one of the most important parts of any workers’ comp case. We can connect you with an Illinois attorney who understands how to properly calculate average weekly wage and has a strong track record of maximizing benefits for injured workers. Contact us through our online form or call us any time at 312-346-5320 for a free consultation. We work with experienced Illinois workers’ compensation attorneys throughout the state who have a track record of winning cases and have shown that they care about their clients.