If you’re an injured worker navigating the workers’ compensation system in California, knowing how your temporary disability (TD) rate and average weekly wage (AWW) are calculated can make a huge difference in the benefits you receive.
Why Temporary Disability Benefits Are Crucial for Injured Workers
Temporary disability payments are essential for injured workers in California. They provide income while you can’t work due to a workplace injury or illness. These payments are based on two-thirds of your AWW, subject to the state’s minimum and maximum limits. A fair calculation of your AWW ensures that the benefits you receive reflect your actual or potential earnings, giving you the support you deserve.
If you believe your temporary disability rate has been miscalculated or doesn’t match your earning potential, the workers’ compensation team at Ryan D. Kayrell, PC is here to advocate for your rights.
California Labor Code Section 4453 outlines four methods for calculating AWW. Here’s a breakdown of these methods and how they can support your financial stability while you heal.
Method 1: For Full-Time, Regularly Scheduled Workers
For employees with predictable hours and wages, the AWW is based on actual weekly earnings at the time of injury. If you work 40 hours a week at $20 an hour, your AWW would be $800, ensuring that your temporary disability benefits accurately reflect a full-time income.
Why This Matters for Workers
This calculation method straightforwardly reflects your earning capacity and supports your financial needs during recovery. If you’re a full-time employee whose wages have been underreported having an Orange County-based workers’ compensation attorney can help you recover your lost wages.
Method 2: Multiple Employers – Combined Earnings (Section 4453(c)(2))
If you work for two or more employers at the time of injury, your AWW is calculated by adding together your earnings from each employer. However, income from jobs other than the one where the injury occurred is capped at the hourly rate you were earning in the job where you were hurt.
Example:
For a worker making $15/hour at Job A (20 hours/week) and $10/hour at Job B (15 hours/week), if the injury occurred at Job A, income from Job B would be capped at $15/hour. This means AWW would be calculated as $15/hour x 20 hours (Job A) + $10/hour x 15 hours (Job B), totaling $525 weekly.
Advocacy for Multi-Job Workers
Workers with multiple jobs should receive TD benefits reflecting all income sources. Ryan D. Kayrell, Orange County workers’ comp attorney, can help ensure you get a fair TD rate if your AWW hasn’t accounted for all earnings.
Method 3: Irregular or Commission-Based Earnings (Section 4453(c)(3))
If your income is irregular, based on piecework, or on commission, AWW is calculated by averaging actual earnings over a representative period, up to one year.
Example:
A commission-based employee with $40,000 in annual earnings would have an AWW of approximately $769 ($40,000 / 52 weeks).
Advocacy for Irregular Income Workers
Having been a practicing defense attorney for years, Ryan D. Kayrell knows that this method is used most often by claims adjuster to produce an AWW that is least accurate. If your adjuster tells you that they are averaging your wages over a 52 week period, call us today for a free consultation.
Method 4: Earning Capacity for Part-Time or Fluctuating Employment (Section 4453(c)(4))
If you work less than 30 hours a week or if the above methods don’t apply, AWW can be determined based on 100% of your estimated earning capacity. This considers what you could reasonably expect to earn, taking into account work history and any anticipated increases.
Example:
If you recently started a role with limited hours but were expected to transition to full-time, this method can calculate AWW based on what you would earn full-time.
Advocacy for Growing Earning Potential
For part-time workers or those with anticipated income growth, this method ensures TD benefits reflect your realistic earning potential. If you have concerns about your AWW, contact Ryan D. Kayrell to discuss how this method can fairly support your recovery.
Why Accurate AWW Calculation Matters for Temporary Disability Benefits
Your AWW calculation directly affects the temporary disability benefits you receive. A miscalculated AWW can mean insufficient financial support during recovery, but with the right legal help, you can ensure that benefits reflect your true earning capacity. Ryan D. Kayrell, Orange County workers’ compensation attorney, understands the complexities of Labor Code Section 4453 and advocates for injured workers’ rights across all income scenarios.
Get Help from an Orange County Workers’ Comp Attorney
Navigating California’s workers’ compensation laws and AWW calculations can be challenging. If you believe your temporary disability rate doesn’t reflect your true earnings or earning potential, let Ryan D. Kayrell, an experienced Orange County-based workers’ compensation attorney, review your case.
Visit ryandkayrell.com for a free consultation. We’re here to make sure you receive the fair and accurate TD benefits you’re entitled to so you can focus on recovery without financial worry.