Why is accurate computation of wages essential in workers' compensation?

Accurate computation of wages is essential in workers' compensation because it directly influences the benefits an injured worker will receive. In workers' compensation cases, the amount of wage loss benefits is typically calculated based on the injured worker's average weekly wages at the time of the injury. This calculation affects how much financial support the employee receives during their recovery, making it crucial for ensuring they have adequate means to cover living expenses while unable to work.

If wages are not accurately computed, it could result in underpayment or overpayment of benefits, which can have significant financial implications for both the employee and the employer. Properly calculated wages ensure that injured workers are treated fairly and receive the appropriate benefits they deserve, in alignment with state workers' compensation laws. This accuracy is fundamental to the equitable administration of workers' compensation systems and plays a key role in maintaining trust between employees and employers.