The Weekly Compensation Rate in Workers’ Compensation Law

It’s important.  Very important.  Why?  Because it represents the only income injured working folks usually have to survive on while they’re in a healing period, following a work injury.  But it’s more than that.  The eventual value (settlement and otherwise) of workers’ compensation cases is based heavily upon what the claimant’s weekly compensation rate is determined to be.  Under law, the average weekly wage and corresponding compensation rate are to be based upon a worker’s contract of hire at the time the injury occurs.  The alternate calculation, favored by insurance companies, is to arrive at a rate by analyzing how much an injured worker earned in the year prior to his work injury, and then dividing that number by 52 weeks.  Insurance companies like this method, because it often makes the compensation rates lower (sometimes much lower) than they legally should be.  This devalues the case, and saves the insurance carrier cash, at an injured worker’s expense.  Competent workers’ compensation lawyers should always make accurately determining a client’s weekly compensation rate one of their top priorities.