Longshore Act Average Weekly Wage Calculation
Average Weekly Wage is perhaps the most heavily litigated issue for Longshore Act litigation. Average weekly wage (or AWW) is the one area where you can really lose money by being taken advantage of by the insurance claims adjuster. Here is an example.
Suppose you have earnings of $68,456.78 for the 52 weeks prior to your injury. You are a 5 day a week worker and you worked 245 days the year before.
52 weeks - Earned $68,456.78
Most Longshore adjusters will calculate your AWW with basic math:
$68,456.78 divided by 52 = $1,316.47
$1,316.47 x 2/3 = $877.65
Thus, an $877.65 compensation rate.
Makes Sense Right?
Not exactly. If you do it this way, you might very well be leaving your family's money with the Longshore Act insurance carrier. This calculation doesn't work for all circumstances.
Let me show you that way the Dept. of Labor trains their Examiners to determine AWW under the Longshore Act:
Step 1: you need to determine how many days you worked in the 52 weeks previous to your injury. For this example, you worked 245 total days the year before you were injured.
Step 2: take total earnings for that 52 week period. In this case - $68,456.78.
Step 3: take $68,456.78 divide by the 245 days actual worked.
$68,456.78 divided by 245 days = $279.41
Results in an Average Daily Wage of $279.41.
Step 4: multiple that figure by 260 days.
$279.41 x 260 (because you are a five day a week worker) = $72,646
Step 5: divide by 52 weeks - - this results in an average weekly wage of $1,397.05.
$1,397.05. x's 2/3 = $931.36
Step 6: Remember calculate AWW the way the L&H insurance adjuster says: Compensation Rate of $877.65.
Do it the way the Department of Labor recommends and you get a total of: $931.36
That is a big difference of $53.71 per week.
Find a Longshore Representative:
You need an expert in the field of Longshore law to make sure that you get all the financial compensation you deserve. I know that $53.71 a week can make a pretty big difference. It could be the money that pays your bills on time, or that buys your daughter that doll she wants for her birthday. It might not seem like a lot of money right now, but at the end of the day it can add up to a lot and you deserve every penny.
Call us today at 619-304-1000