How Average Weekly Wage Is Calculated in Illinois Workers’ Comp

What Factors Determine Your Average Weekly Wage in Illinois Workers’ Compensation?

Besides covering your medical bills, workers’ comp gives you two-thirds of your lost wages if your work injury or illness prevents you from working or reduces your earning capacity. Calculating your average wage is instrumental in determining how much you will get in weekly benefits. Some factors that will determine your AWW in Illinois workers’ comp include:

Total Income

Your total income is a key consideration in the AWW calculation process. It includes all actual earnings from the date you began employment to the date of the injury. Financial documents, such as bank statements and pay stubs, can provide proof of income.

Time Lost from Work

The time lost from work also affects the AWW. Generally, this period is deducted from the standard 52-week timeframe before the calculation.

Employment Period

Your employment period also affects the AWW in a workers’ comp claim. If you worked for 52 weeks straight, your total earnings will be divided by 52 to determine your AWW. If you missed several days or weeks, the lost time will be deducted from the 52 weeks before calculating the total earnings.

How Employers and Insurance Companies Calculate Average Weekly Benefits

Workers’ compensation lasts for a few months, years, or even a lifetime, depending on the severity of your injury. Employers and insurance companies determine average weekly benefits using the following four methods:

Method 1: 52-Week Guideline

This method involves summing up all your basic earnings for the 52-week period. The sum is then divided by 52 to determine the average weekly wage. Your employer can then use your AWW to calculate the amount of compensation. Overtime and other bonuses aren’t included in the total income.

Method 2: Lost Time

Lost time is usually deducted from the 52-week period to determine the actual time you reported to work. Your earnings are then divided by the number of weeks you actually worked. However, time lost is only deducted if you spent more than five days away from work.

Method 3: Less than 52 Weeks of Employment

If you worked for less than 52 weeks, then your employer will use the total number of weeks you worked rather than 52. This method often applies to seasonal employees, such as construction workers and landscapers, whose employment lasts a few months per year.

Method 4: Unique Circumstances

This calculation method applies to employees who have worked for a couple of weeks before getting injured. In such a case, your employer will use the average earnings received by another worker in the same role who also works the same number of hours a week to determine your AWW.

Mistakes that Affect Your Average Weekly Wage (AWW) Calculation

Common mistakes that may hurt your AWW calculation in a workers’ comp claim include:

Inaccurately Counting the Number of Weeks Worked

Using an inaccurate number of weeks worked will reduce your AWW if you spent time away from work because of unpaid leave.

Not Including all Your Income

Leaving out some forms of your income during the calculation process lowers your average weekly wage.

Forgetting to include Raises

Your AWW will be lower and inaccurate if you do not include a raise you received before you got injured.

Failing to Seek Legal Support

You are likely to miscalculate your AWW and receive a lower financial recovery if you handle your workers’ comp claim alone. You may fail to account for all types of income you received before getting injured. You may also struggle with navigating special circumstances, such as temporary employment or working less than 52 weeks. A Bloomington workers’ compensation lawyer can review your situation and calculate your AWW using the right method. The lawyer can also address disputes with your employer or insurance company to ensure accurate calculation.

The experienced legal team at Strong Law Offices can handle every component of your workers’ comp case, including calculating your AWW accurately. Contact us to discuss the benefits you are entitled to with one of our Bloomington workers’ compensation lawyers.

Frequently Asked Questions (FAQs)

How is the average weekly wage calculated for part-time employees?

In Illinois, a part-time employee’s average weekly wage (AWW) is based on actual earnings during the 52 weeks before injury, divided by weeks worked. It reflects their regular part-time schedule and isn’t adjusted to full-time. If hours vary, the AWW averages total wages over worked weeks.

Can bonuses and overtime affect my workers’ compensation benefits?

Overtime and bonuses aren’t usually included in an employee’s total earnings when calculating his or her average weekly wage. However, you may include them if you worked consistently overtime or overtime hours were a requirement in your job.

What should I do if I believe that my wage calculation is incorrect?

If you think your AWW is inaccurate, gather your bank statements and pay stubs to prove your claim. You should then notify your employer of the error and support your claim with evidence. You should also involve a workers’ comp lawyer.