Worker’s compensation claims often include wage loss benefits, which are calculated based upon the injured worker’s Average Weekly Wage (AWW) at the time of injury. Understanding how wage loss benefits are calculated and paid ensures injured workers receive the correct benefit amount and know what to do if they are not receiving the full compensation they deserve.
Under Wisconsin’s Worker’s Compensation laws, an injured worker is entitled to two-thirds of their “Average Weekly Wage” (AWW) for each week they miss work due to temporary work restrictions from a work injury. In situations where an injured worker is working a lesser-paying job or reduced hours due to temporary work restrictions, the benefit amount is equal to two-thirds of the difference between their wage at the time of the injury and what they earn while on light duty.
After a workplace injury, the injured worker’s AWW serves as the basis for calculating the wage loss benefit amount. If the calculated AWW is undercalculated, the injured worker may not receive their full temporary wage loss benefit. If the AWW is overcalculated, the injured worker could receive more than they are entitled to and the worker’s compensation carrier may claim an overpayment.
A worker’s AWW amount reflects their total earnings for one year prior to the injury. In Wisconsin, the wage loss benefit amount is calculated using the greater of the following:
Suppose a worker was earning $20 per hour and had earned $40,000 between March 30, 2024, and April 1, 2025, with the injury occurring on April 1, 2025. The worker’s temporary total wage loss benefit would be the greater of the following:
Here, the second calculation yields the higher wage loss amount and would be used to set the injured worker’s wage loss benefit.
Wage loss benefits for part-time employees are generally the same as for full-time employees (see above). However, a part-time employee can have their wage loss benefits calculated based on a 40-hour workweek if they prove they held another job at the time of injury or show they worked part-time for less than 12 months before the date of injury. The employer can argue against the 40-hour workweek expansion if they can provide evidence that the employee chose to work part-time.
Under Wisconsin’s worker’s compensation statutes, earnings from a second job are not included when calculating a worker’s wage loss benefits. Calculations are based solely on the earnings from the job where the injury occurred. However, if the injury occurred at a part-time job, wage loss benefits are calculated based on a 40-hour workweek for that part-time job.
An accurate AWW calculation ensures injured workers receive what they are entitled to after a workplace injury. Errors in calculating a worker’s AWW can leave significant money on the table. The experienced worker’s compensation attorney team at Kingree Law Firm understands the nuances of Wisconsin worker’s compensation law and will work to maximize your benefits after a workplace injury.
The experienced Wisconsin worker’s compensation attorney team at Kingree Law Firm can ensure your wage loss benefit amount is calculated correctly. We can analyze your prior earnings and offer representation if the Wisconsin Department of Workforce Development or insurance carrier does not apply the correct calculation over the correct time period.
If you experienced a workplace accident or suffered an occupational injury that caused significant lost time from work, permanent disability, permanent wage loss, or if your claim for worker’s compensation benefits was denied, contact Kingree Law Firm today to schedule an appointment to discuss your situation and how we can assist you.
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