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CalculatingThe Average Weekly Wage

Over the past several years the insurance companies have calculated the average weekly wage (AWW) by taking the 52 week earnings prior to the accident and dividing by 52. In certain cases, however those earnings or lack of earnings do not fairly represent the average weekly wage at the time of accident. Examples of such unfairness is seen in the following: where the claimant worked only a short time in Iraq; and the claimant either did not work consistently or earned less wages prior to deployment overseas.

Under 33 USC sec. 910(c), a judge may determine the average weekly wage if it more reasonably represents the claimant's annual earning capacity at the time of injury. For instance, if claimant earned less money in a job in the United States, there have been cases where the judges have found the claimants' contract rate in Iraq to more accurately reflect claimants' earnings capacity, resulting in claimant's compensation rate being significantly increased. Other judges have held the AWW to be calculated by using a "blend" of prior stateside earnings and the contract rate.

The calculation of the AWW is extremely important since it determines the amount of benefits a claimant receives both for temporary and permanent disability. An injured worker cannot accept at face value the amount of the AWW calculated by the insurance company. We have been successful in raising the AWW and compensate rates for our clients.