In Nebraska, you are entitled to 2/3 of your average weekly wages when you are off work for a workers’ compensation injury. You may also be entitled to permanent disability based on 2/3 of your average weekly wage as well. But what does “average weekly wage” mean and how do you calculate it?
How to calculate Average Weekly Wage (AWW)
Generally speaking, the AWW of a work comp claim in Nebraska are calculated based on a workers’ wages in the 26 weeks before the date of the accident. If the injured worker has not been there for 26 weeks, often the AWW would be based on the number of weeks the worker has actually worked. In rare instances (e.g. if someone is injured within the first few days on the job), the AWW might actually be calculated by using other employees in a similar job as the injured worker.
Tips are normally included in the AWW. Commissions or bonuses are also likely included if they were fixed at the time of hiring. Alternatively, other benefits, such as health insurance or room and board are usually not included in the AWW calculation, with the exception that the room and board potentially could be included if the money value of the room and board was fixed at the time of the hiring.
Abnormally low weeks from the 26-week-period may also be excluded in the calculation, as not to artificially drive down the true average earnings. Overtime hours are also included in the AWW, but it may only be calculated as “straight time” and not at premium pay. For example, someone making $20 per hour who works 45 hours per week, would only be entitled to 45 x 20 = $900 AWW (and not time-and-a-half for the 5 extra hours of overtime). The workers’ compensation rate in this example (for temporary and permanent benefits) would then be $900 x 2/3 = $600.