Average Weekly Wage
Definition
Average weekly wage (AWW) is a calculation used to determine the monetary value of lost income and disability benefits. It represents the average amount a worker earned per week before their injury, typically calculated using earnings from a specified period—often the 52 weeks immediately preceding the injury. Texas workers’ compensation and personal injury claims both use AWW to calculate lost wage damages.
How It’s Used in Personal Injury Cases
Average weekly wage forms the basis for calculating lost earnings—both past income already lost and future earning capacity. To determine your lost wages claim, multiply your AWW by the number of weeks you were unable to work. For ongoing or permanent disability, AWW establishes the baseline for calculating future lost earning capacity. Insurance companies scrutinize AWW calculations closely and may dispute whether all income sources are properly included.
Practical Example
Marcus earned $60,000 annually before his car accident, making his average weekly wage $1,153.85. He was unable to work for 16 weeks during recovery. His lost wages claim was calculated as $1,153.85 × 16 weeks = $18,461.60. Because Marcus also typically worked 10 hours of overtime weekly at time-and-a-half, his attorney argued the AWW should include average overtime earnings, increasing the weekly figure and the total lost wages recovery.
Why It Matters to Your Case
Accurate AWW calculation directly impacts your lost wages recovery. Include all earnings sources: regular wages, overtime, bonuses, commissions, and fringe benefits. Self-employed individuals need documentation like tax returns to establish AWW. A higher AWW means greater compensation for your lost income. Gather pay stubs, tax returns, and employer documentation to support the highest accurate AWW calculation.
Key Takeaway
Average weekly wage determines the value of your lost income claim—accurate calculation including all earnings sources maximizes your recovery for time missed from work.