How are benefits calculated for workers' compensation claims?

Benefits for workers' compensation claims are calculated based on the employee's average wage over a relevant period, which includes not only their hourly wage but also additional compensation such as bonuses and overtime. This approach ensures that the calculation of benefits reflects the employee's true earnings and their financial situation before the work-related injury or illness occurred.

Using the average wage rather than just the hourly wage provides a more comprehensive view of an employee's total earnings, which can significantly affect the amount of compensation they receive. It also adheres to the principle that workers' compensation should replace lost income in a way that is equitable and representative of the employee's normal earning capacity.

Other methods, such as considering only the last paycheck or prior job earnings in similar positions, do not capture the full spectrum of the employee's earnings, potentially leading to an inadequate benefit that does not meet the needs of the injured worker. This comprehensive calculation helps ensure that workers receive fair compensation when they are unable to work due to a job-related injury or illness.