How is AWW Calculated? Average Weekly Wage (AWW)
Updated: Sep 22
Florida Workers’ Compensation — Average Weekly Wage (AWW) Explained
Your average weekly wage (AWW) is one of the most important numbers in a Florida workers’ compensation claim because it provides the basis for calculating many disability benefits. If the AWW is calculated too low, the workers’ compensation benefits based on that figure may also be too low.
AWW is not always as simple as looking at an employee's hourly rate or most recent paycheck. Overtime, a second job, irregular work, a short employment history, certain fringe benefits, and the particular wage-calculation method required by Florida law can all affect the result. For a broader explanation of medical benefits, lost-wage benefits, claim procedures, and disputed benefits, visit our Hollywood workers’ compensation lawyer page.
Quick Answer: What Is Average Weekly Wage in Florida Workers’ Compensation?
Average weekly wage is the wage figure Florida workers’ compensation uses as the starting point for calculating disability compensation.
For many employees, Florida law looks at wages earned during the 13 calendar weeks immediately before the accident, excluding the week in which the accident occurred.
The calculation can become more complicated when an employee recently started the job, worked irregular hours, held concurrent employment, received certain benefits or gratuities, was a seasonal worker, worked part time, or did not work substantially the whole 13-week period.
Because AWW provides the starting point for many indemnity calculations, an incorrect wage figure can affect multiple payments. Our guide to Florida workers’ compensation lost-wage benefits explains how AWW interacts with Temporary Total Disability and Temporary Partial Disability benefits.
How Is Average Weekly Wage Calculated in Florida?
Florida Statute § 440.14 establishes several methods for determining an injured employee's AWW.
When an injured employee worked in the relevant employment during substantially the whole 13 weeks immediately preceding the accident, AWW is generally calculated using the wages earned during those 13 calendar weeks, excluding the week in which the accident occurred.
Florida law defines working “substantially the whole of 13 weeks” as working at least 75% of the total customary hours of employment during that period.
But not every injured employee has a normal 13-week wage history.
If the employee did not work substantially the whole 13-week period, Florida law provides alternative methods for determining AWW. Depending on the circumstances, the calculation may involve the wages of a similar employee in the same employment who worked substantially the whole period.
Special rules may also apply to seasonal workers, customary part-time workers, younger employees whose wages would normally be expected to increase, and situations in which the ordinary statutory methods cannot reasonably and fairly be applied.
That is why determining AWW is not always as simple as adding 13 weeks of paychecks and dividing by 13. The worker's employment history and the particular calculation method required by Florida law should be examined before accepting the AWW calculated by an employer or insurance carrier.
Example: How Does a 13-Week AWW Calculation Work?
Suppose an employee earned a total of $15,600 during the applicable 13-week period before a workplace accident.
If the standard 13-week method applies:
$15,600 ÷ 13 = $1,200 average weekly wage
The employee's AWW would therefore be $1,200.
AWW is not necessarily the amount of the worker's weekly disability check. Instead, it is the wage figure used to calculate applicable workers’ compensation benefits.
For example, Temporary Total Disability benefits are generally calculated at 66 2/3% of AWW, subject to Florida's applicable maximum compensation rate and other statutory requirements.
Using this example:
$1,200 × 66 2/3% = approximately $800 per week
An AWW error therefore can have consequences beyond the original wage calculation. If qualifying wages are omitted and AWW is understated, disability payments calculated from that AWW may also be too low.
For a more detailed explanation of how AWW is converted into a weekly benefit amount, see Florida Workers’ Compensation Rate: How Much Does Workers’ Comp Pay?.
What Counts as Wages When Calculating AWW?
AWW does not necessarily mean only an employee's regular hourly rate or base salary.
Florida's statutory definition of wages can include qualifying earnings from the employment where the employee was injured and certain qualifying earnings from concurrent employment.
Depending on the facts and statutory requirements, the wage calculation may also be affected by items such as:
Overtime earnings
Tips or gratuities reported to the employer
Certain bonuses or other qualifying compensation
Housing, lodging, or similar qualifying benefits
Certain employer-paid health-insurance benefits
Qualifying earnings from another job
Whether a particular payment or benefit belongs in the AWW calculation depends on the statutory requirements and facts of the individual claim.
This is one reason an AWW should not automatically be calculated simply by multiplying an employee's hourly rate by 40 hours.
Does Overtime Count Toward Average Weekly Wage?
An employee's actual earnings during the applicable wage period can be important when calculating AWW.
Regular overtime can therefore make a significant difference between an AWW calculated merely from an employee's hourly rate and one based on the wages actually earned during the statutory period.
For example, an employee may technically earn $20 per hour but regularly work more than 40 hours per week. Looking only at the employee's base hourly rate may not accurately reflect the wages earned during the applicable statutory period.
Pay stubs, payroll records, time records, and the employer's wage statement should therefore be reviewed rather than simply assuming the employer or workers’ compensation insurance carrier calculated AWW correctly.
What if I Had More Than One Job?
If you were working more than one job when you were injured, earnings from qualifying concurrent employment may need to be considered when calculating your average weekly wage.
This can make a substantial difference.
For example, suppose an employee earned $700 per week at the job where the accident occurred and another $300 per week from qualifying concurrent employment. An AWW calculation that considers only the first job could substantially understate the worker's qualifying wages.
Florida workers’ compensation law specifically addresses lost wages from concurrent employment. The employee has responsibility for providing information concerning the loss of earnings from that concurrent employment.
Not every source of additional income automatically qualifies. Whether earnings from another job should be included depends on the nature of the employment and the requirements of Florida workers’ compensation law.
An injured worker who held more than one job should identify the additional employment and preserve evidence of those earnings, including:
Pay stubs
Payroll records
W-2 forms
Work schedules
Direct-deposit records
Other documentation showing the wages earned from the additional job
Failing to identify qualifying concurrent employment can result in an AWW calculation that does not account for all wages that should have been considered.
What if I Had Not Worked at the Job for 13 Weeks?
Starting a new job shortly before an accident does not necessarily mean that the employee's AWW should simply be based on the few weeks the employee happened to work.
Florida Statute § 440.14 provides another method when an employee did not work in the employment during substantially the whole 13 weeks before the accident.
Under appropriate circumstances, the wages of a similar employee in the same employment who worked substantially the whole 13-week period may be used.
If the statutory methods cannot reasonably and fairly be applied, Florida law provides another method based upon the injured employee's full-time weekly wages, subject to other statutory provisions.
The correct question is therefore not merely, “How many weeks did I work?”
The question is which method under Florida law properly applies to this employee's particular employment history?
What About Seasonal or Part-Time Workers?
Florida law also contains specific provisions addressing seasonal and part-time employment.
For a qualifying seasonal worker, when the ordinary methods cannot fairly determine AWW, the statute may permit consideration of a longer wage period, subject to the statutory requirements and available wage records.
Part-time employment presents a different issue. If an employee had adopted part-time employment as a customary practice and probably would have remained a part-time worker during the period of disability, Florida law directs that those circumstances be considered in determining AWW.
These situations illustrate why AWW is sometimes a legal issue as much as a mathematical one.
Can Fringe Benefits Affect Average Weekly Wage?
They can in some circumstances.
Florida workers’ compensation law contains rules governing certain non-cash consideration and fringe benefits. Whether a particular benefit affects AWW can depend on the type of benefit, whether it qualifies as wages under Florida law, and whether the employer continues providing it after the injury.
The statute also addresses adjustments to the wage calculation in certain circumstances when qualifying fringe benefits terminate while an employee is receiving indemnity benefits.
This can be important because the employee's compensation rate may need to be reconsidered when qualifying benefits that were previously being provided are terminated.
Why Does AWW Matter?
AWW provides the foundation for calculating several Florida workers’ compensation disability benefits.
For example, Temporary Total Disability (TTD) benefits are generally 66 2/3% of AWW, subject to the applicable maximum compensation rate and other statutory requirements.
Temporary Partial Disability (TPD) benefits use AWW as part of a different statutory formula when an injured employee can return to some work but earns less because of the injury.
AWW can therefore affect benefit checks repeatedly over the life of a workers’ compensation claim.
An AWW error of only $100 per week does not necessarily mean a one-time $100 mistake. If disability benefits are repeatedly calculated using an incorrect AWW, the effect can continue from payment to payment.
For a broader discussion of TTD, TPD, work restrictions, and reduced earnings, see Lost Wage Benefits Under Florida Workers’ Compensation.
How Can I Check Whether My AWW Is Correct?
Start by identifying the wage information the employer or insurance carrier used.
Compare the employer's wage statement with your own records for the applicable period, including:
Pay stubs
Payroll records
Overtime
Work schedules and hours
Bonuses or other compensation that may qualify
Tips or gratuities, when applicable
Qualifying fringe benefits
Earnings from qualifying concurrent employment
Next, determine whether the correct statutory calculation method was used.
If you had not worked substantially the whole 13-week period, for example, simply dividing the wages you happened to earn by 13 may not be the appropriate calculation. The similar-employee provisions or another statutory method may apply.
A calculation can therefore be mathematically correct and still produce the wrong AWW if incomplete wage information or the wrong statutory method was used.
What if the Insurance Carrier Calculated My AWW Incorrectly?
Do not assume that the wage figure appearing on a workers’ compensation benefit check is necessarily correct.
Pay stubs, payroll records, overtime, concurrent employment, qualifying benefits, the employer's wage statement, and the applicable statutory calculation should be reviewed.
Common issues can include:
Missing overtime
Incomplete wage records
Omitted qualifying concurrent employment
An incorrect 13-week period
Failure to use an applicable similar employee
Incorrect treatment of qualifying fringe benefits
Use of a calculation method that does not fit the employee's work history
Depending on the circumstances, correcting an AWW error can result in an adjustment of ongoing benefits and additional amounts for benefits that were previously underpaid.
Workers’ Compensation Wage Claims Require Serious Preparation
An AWW dispute is not always a simple math problem.
The applicable wage period, payroll records, overtime, concurrent employment, fringe benefits, employment history, medical work status, and type of disability benefit may all affect what an injured worker should receive.
The employer or insurance carrier may calculate AWW incorrectly, omit qualifying wages, use the wrong wage period, fail to include qualifying concurrent employment, or otherwise understate the wages used to determine the employee's compensation rate.
Because an incorrect AWW can reduce disability payments calculated from that figure, even a seemingly modest error can result in significant underpayment over the course of a claim.
For a complete overview of Florida workplace-injury claims, including medical treatment, TTD, TPD, impairment benefits, light-duty work, and disputed benefits, visit our Hollywood workers’ compensation lawyer page.
Discuss Your Workers’ Compensation Claim Directly With Dan
If you were injured at work and believe your average weekly wage (AWW) was calculated incorrectly, qualifying wages were excluded, or your disability benefits have been underpaid, contact Dan. All consultations are free, with no attorney’s fee unless a recovery is obtained, and evening and weekend appointments are available. An incorrect AWW can reduce every disability payment based on that calculation. Contact Dan promptly to protect your rights and pursue the workers’ compensation benefits available under Florida law. CALL Dan: 📞 (954) 923-6110
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