How is average weekly wage calculated in US workers' comp?
The most common method divides your total gross earnings in the 52 weeks before the injury by the number of weeks worked. Some states use the 13, 26, or 39 weeks before injury, exclude weeks with no work, or add the weekly value of employer-paid fringe benefits that stopped after the injury.
Does the AWW include overtime and bonuses?
In most states, yes. Overtime, shift differentials, and regularly paid bonuses are included in gross earnings when computing the average weekly wage. Including them raises your AWW and therefore your two-thirds benefit rate, subject to the state maximum.
Why does average weekly wage matter so much?
Because nearly every workers' comp benefit is a fraction of your AWW. Temporary total disability, permanent partial disability, and permanent total disability rates are all based on two-thirds of the AWW. An error in the AWW carries through to every check you receive.
Can fringe benefits be added to my AWW?
In many states, the value of employer-provided benefits you lost because of the injury, such as health insurance or housing, can be added to the average weekly wage. This can meaningfully raise your benefit rate, so it is worth documenting all discontinued fringe benefits.