One of the most important aspects of workers’ compensation benefits is to help you cover your missed wages. Thanks to workers’ compensation, you do not need to worry about losing excessive income while you heal from your injuries. To a certain extent, this relieves the financial pressures associated with a workplace injury – allowing you to take all the time you need to fully recover. However, the specific amount of your missed wage benefits can be difficult to determine. The calculation methods are slightly complex – and you might want to discuss this in more detail with your workers’ compensation attorney in Colorado. The Law Offices of W. Dan Mahoney, P.C. can discuss the nature of your workers’ compensation case with you to help determine the amount of compensation you could receive.

Why Do I Need to Calculate My Average Weekly Wages?

You might be wondering why you even need to calculate your average weekly wages when filing a workers’ compensation claim in Colorado. Why can’t you just tell the State of Colorado Workers’ Comp Division how much you earn per year? Insurers and employers claim that many workers misrepresent the truth about their earnings in order to pursue higher wage benefits. Alternatively, you might accidentally misrepresent your average earnings.

For example, you might earn about $60,000 per year. However, you might also take an average of four sick days each year. Perhaps you were late to work a few mornings – and maybe you received permission to leave early on a few afternoons. The State of Colorado Workers’ Comp Division may take these factors into account when calculating your missed wage benefits.

How are My Average Weekly Wages Calculated?

Your average weekly wages are calculated by examining a “lookback period” before the accident. Usually, this period is about three to four months. Once you calculate how much money you earned during this period, you can divide that amount by the total number of weeks. This should leave you with your average weekly wages (AWW).

For example, you might have earned $17,500 in the three months prior to your accident. Since three months equals 12 weeks, you would divide 17,500 by 12 to calculate your AWW. In this case, your AWW would be $1,458. This is not your final compensation amount, as you will only receive ⅔ of your AWW via workers’ compensation. As a result, you need to multiply $1,458 by ⅔ which results in a benefit of  $972. This is how much money you can expect to receive as you recover from your workplace injury.

In some cases, workers never fully recover from their injuries. If you face a permanent, total disability as a result of your accident, you might receive missed wage benefits for the rest of your life. This could prove to be a vital source of financial security – and it is therefore extremely important to maximize your benefits. This is why it can be crucial that you hire an experienced workers’ compensation lawyer.

Who Makes Average Weekly Wages Calculations for My Workers’ Comp Claim?

Insurance companies are usually responsible for making AWW calculations in Colorado. However, it is important to remember that these are for-profit companies – not charities. In their pursuit of profit, they will undoubtedly try to skew your AWW calculations in such a way that you receive less. Your workers’ compensation lawyer can verify calculations made by insurance companies – potentially identifying errors.

For example, the insurance company might only examine one source of income when making AWW calculations. But what if you work two jobs? AWW calculations should be based on all your various sources of income – and not only on the job you were working at the time of the accident.

For example, you might work as a part-time piano teacher during the weekends. If you were injured after a slip and fall while working at a grocery store, you might sprain your wrists while trying to cushion your fall. You may therefore lose your part-time source of income as a piano instructor while your wrists heal. Aside from multiple sources of income, various other factors may affect AWW calculations. These include:

• Overtime
• Bonuses
• Inconsistent work hours
• Fringe benefits
• Seasonal employment issues

Contact The Law Offices of W. Dan Mahoney, P.C.

If you are serious about maximizing your missed wages after a workplace injury, contact The Law Offices of W. Dan Mahoney, P.C. You deserve as much financial support as possible as you recover and access healthcare treatments. The average weekly wage calculation is just one factor worth considering as you pursue positive results. To discuss other areas of concern, book a consultation with our experienced workers’ compensation attorney in Colorado today. We will help you get the most out of your workers’ compensation claim.