What Is Average Weekly Wage and Why Does It Matter in Workers’ Compensation Claims?

What Is Average Weekly Wage in NYC Workers’ Compensation Cases?

Here's a breakdown of average weekly wage:

• Benefit Calculation Basis: The weekly workers' compensation benefit for wage replacement is calculated as two-thirds (66.67%) of the injured worker's Average Weekly Wage (AWW). This amount is then capped by the state-mandated maximum weekly benefit and cannot fall below the state-mandated minimum.
• Calculating Average Weekly Wage (AWW): The AWW is typically determined by dividing the worker's total gross earnings in the 52 weeks immediately prior to the injury by the number of days worked. This is then adjusted by a multiplier based on the number of days worked per week (e.g., 260 days for a 5-day workweek) and divided by 52 to arrive at the weekly average.
  • Example: If a worker earned a total of $52,000 over 260 days (5 days a week) in the 52 weeks before injury, their AWW would be calculated as: ($52,000 / 260 days) * 260 days / 52 weeks = $1,000.
• Maximum & Minimum Benefit Amounts: The maximum weekly benefit amount is subject to annual adjustment by the state's Workers' Compensation Board each year on July 1st. For the period of July 1, 2024, through June 30, 2025, the maximum is set at $1,171.46, while the minimum weekly benefit was $275 for 2024 injuries. For injuries on or after January 1, 2025, the minimum increased to $325. Compensation is capped at these amounts, even if two-thirds of the AWW is higher.
• Important Considerations: The AWW calculation can be more complex for workers with irregular earnings, such as seasonal workers, part-time employees, or those with fluctuating income, potentially requiring different multipliers or methods. Furthermore, workers who return to work with reduced earnings due to their injury may be entitled to partial disability benefits, making up two-thirds of the difference between their current earnings and their pre-injury AWW.

How Is Average Weekly Wage Calculated in New York?

1. Total earnings in the last 52 weeks before injury : This includes your paychecks, overtime, and certain extra pay—if it’s related to your job and regular work schedule.
2. Divide that number by how many weeks you worked : If you didn’t work all 52 weeks—maybe due to vacation, illness, or starting late—it’s based only on the number of weeks you were actually working.

• Union scale pay : If you’re in a union and get a set wage depending on your trade, that amount may be used instead.
• Irregular hours or pay : If your work varies a lot each week, a different method may be used to get a fair wage estimate.
• Part-time or student workers : The AWW might be adjusted to reflect what a full-time worker in your role would earn.

Why Does Average Weekly Wage Matter for Workers’ Comp Benefits?

• Your Average Weekly Wage : This is how much you earned each week before your injury.
• Your level of disability : Whether you can’t work at all or can only work part-time or with limits.

• If your AWW is $900 and you’re totally disabled (100%), you may get $600 per week in benefits.
• If you're only 50% disabled , you may get $300 per week (half of the $600).

What Income Is Included in Your Average Weekly Wage?

• Regular wages or salary : This includes your hourly wage or salary from your main job.
• Overtime pay : If you regularly work overtime, that extra pay may be factored into your AWW.
• Tips : Reported tips are included in your wage calculation, as long as they are documented.
• Bonuses : Some bonuses may count if they are part of your normal pay, not one-time or rare payments.
• Commission : If you earn commission regularly, it can be included in your average pay.
• Value of lodging or meals : If your employer provides housing, food, or other non-cash benefits, these may count as income—but only if they are part of your pay package.

• One-time bonuses : Unusual or holiday bonuses may not be included.
• Future possible raises : You can’t include income you might earn later.
• Insurance or retirement contributions : Money your employer puts into benefits plans often doesn’t count.

How Can Errors in AWW Calculations Affect Your Payments?

• Lower benefit checks: If your AWW is calculated too low, your weekly benefits will also be lower than they should be. This can make it hard to pay for rent, groceries, or other important expenses.
• Delayed payments: Disagreements over your correct AWW can slow down how soon you start receiving benefits. This is especially hard if you're already out of work and waiting for a check.
• Lost benefits: If the error isn’t caught quickly, you could lose out on back pay you were entitled to. Even small mistakes over time can cost you a lot of money.
• Unfair medical coverage limits: Some non-wage benefits, like certain reimbursements, may be tied to your AWW. If it's wrong, these limits may also be incorrect.

• Leaving out overtime or second jobs you worked before the injury
• Using the wrong time period to calculate your wages
• Not including bonuses or tips you earned regularly
• Incorrect employer records, especially for workers paid in cash

Can Your Average Weekly Wage Be Adjusted Over Time?

• Inaccurate initial calculation: Sometimes, the insurance company or employer makes a mistake when calculating your AWW. If your full earnings weren’t included—like overtime, bonuses, or income from a second job—your AWW may be too low.
• Return to partial work: If you return to work in a limited capacity (for example, part-time or light duty), your benefits might be adjusted to reflect your new wages and continuing loss of income.
• Seasonal or irregular work: If your job has periods of high and low income—such as a construction worker whose hours vary by season—your AWW might be recalculated using a broader time frame or a different method to better reflect your true weekly earnings.
• Workers under age 25: Under Section 14(5) of the Workers’ Compensation Law, if you were under 25 at the time of injury and your wages would normally be expected to increase, that fact may be considered in calculating your AWW when a finding of permanency is made.

What If You Work More Than One Job in NYC?

• All covered jobs count: You must report all jobs covered by New York Workers’ Compensation when filing a claim.
• Prove income from each job: You’ll need pay stubs, tax forms, or employer statements for each job to show what you earned.
• Wages are added together: The Workers’ Compensation Board combines your weekly income from all qualifying jobs to calculate your AWW.

Is Overtime Included in Your Average Weekly Wage?

• Consistent Overtime: If you worked overtime regularly—say every week or most weeks—it likely will be included when calculating your AWW.
• Occasional Overtime: If the overtime was rare or only during certain seasons, it may be left out, since it doesn’t reflect your usual earnings.
• Proof of Earnings: You’ll need clear records, like pay stubs or employer wage statements, showing your total hours and overtime pay.

What Happens If You’re Paid in Cash or Off the Books?

• You must prove your income: Since there's no official pay stub, you’ll need other records. This can include bank deposits, text messages, work calendars, written agreements, or testimony from coworkers or family members.
• Your employer may deny the claim: Employers who pay off the books may try to say you weren’t an employee. But if you can show you worked for them and were injured doing that work, you may still have a case.
• The Workers’ Compensation Board will investigate: If your employer didn’t report your wages, the Board might look into your work history, job duties, and any evidence you have to set a fair AWW.

How Can a NYC Workers’ Compensation Lawyer Help Protect Your Wage Rights?

• Reviewing your earnings history: Your lawyer can check pay stubs, tax documents, and employer records to confirm your true average weekly earnings. This includes base pay, bonuses, overtime, and other regular income.
• Making sure all income sources are counted: If you have more than one job or work irregular hours, your lawyer can work to include all wages in your AWW calculation.
• Correcting errors in calculations: Insurance carriers or employers may miscalculate your AWW by mistake or by leaving out certain types of wages. A lawyer can identify these errors and gather proof to fix them.
• Fighting for fair adjustments: If your job or income changed recently, your lawyer can help argue for an adjusted AWW that better reflects your actual earning potential—not just old earnings that don’t tell the whole story.
• Helping undocumented or cash-paid workers: If you were paid "off the books," a lawyer can gather supporting documents to establish your wage history—even without traditional pay stubs. This may include bank statements, text messages, or witness statements.

FAQ: Average Weekly Wage in New York Workers' Compensation

1. What is Average Weekly Wage (AWW)? Your AWW is the average amount you earned per week before your work-related injury or illness. It's used to figure out how much you’ll get in workers’ comp benefits.
2. How is AWW used to calculate workers’ comp payments? In most cases, your workers’ comp wage benefits are about two-thirds (66.67%) of your AWW, up to a state-set weekly maximum.
3. How many weeks of pay are used to figure out my AWW? New York usually averages your earnings over the 52 weeks before your injury. If you didn’t work the full year, the insurance company may use the time you did work or look at what others in similar jobs earned.
4. Does AWW include income from second jobs in NYC? Yes, if your second job is legal and reported (on the books), that income can be part of your AWW. It must be disclosed during your workers' comp claim.
5. Is overtime included in my AWW? Yes, overtime can count if it was regular and consistent before you got hurt. Occasional or rare overtime may not be included.
6. What if I was paid in cash or "off the books"? If your employer paid you in cash and didn’t report it, that income may not be counted toward your AWW unless you can show clear proof—like bank records, pay stubs, or tax filings. This can make claiming full benefits harder.
7. Can mistakes in my AWW be fixed? Yes. If you think your AWW is too low or was calculated incorrectly, you can challenge it. Having legal support can help you gather the right records and present your case.
8. Can AWW change during my claim? In some rare cases, yes—especially if evidence shows that the original AWW was unfair or incomplete. But most of the time, it's set early on in your claim.
9. Does AWW affect all workers’ comp benefits? It mainly affects wage-replacement benefits (the money you get when you can't work). It doesn’t directly change your medical benefits, which are covered separately under workers' comp.

Sources

• NYS Workers' Compensation Board — Schedule of Maximum Weekly Benefit
• NYS Workers' Compensation Board — Calculating Your Average Weekly Wage
• New York Workers' Compensation Law Section 14 — Weekly Wages Basis of Compensation
• NYS WCB Subject Number 046-1754 — Maximum and Minimum Benefit Rates
• Governor Hochul — Increased Benefits for Employees 2025

Contact The Orlow Firm for a Free Consultation About Your Workers’ Compensation Claim

• Review your wage history to make sure all qualifying income is included in your AWW
• Spot and correct calculation errors that may lower your benefit payments
• Help if you're paid off the books or in cash and need to prove your income
• Advocate for adjustments to your AWW if your work status or income has changed
• Answer questions about overtime, tips, and second jobs , and how they impact your AWW