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Statewide Average Weekly Wage

Definition - What does Statewide Average Weekly Wage mean?

The average weekly wage is the amount of money earned by a particular worker each week. The average weekly wage is used to determine workers' compensation payments for workers injured while performing their normal job duties. In general, the higher the injured worker's average weekly wage prior to the injury, the larger the compensation payment after the work injury.

Given that worker's wages vary from one worker to the next, certain states have decided to establish an average weekly wage to calculate workers' compensation wage payments. In these states the state establishes a maximum workers' compensation payment based on the state average weekly wage.

For example, if you are injured in the state of Texas your work comp payments cannot "exceed the state average weekly wage which is set to 88 percent the average weekly wage in covered employment."

How will my average weekly wage be calculated?

Average weekly wages should equal the amount you earned in a year divided by 52, which will be comparable to the total amount of compensation you earned in the 52-week period prior to an injury, divided by 52.

Workers' compensation laws vary by state. If you have questions about how your wages may be calculated after your work injury you will need to talk to the human resources officer in your company, a work comp lawyer, or the insurance company providing the workers' compensation policy for your employer.

 

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