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How are lost wage benefits calculated?

Workers’ compensation provides several different types of benefits to people who become unable to work due to a workplace accident or occupational disease. These include coverage for medical expenses and vocational rehabilitation. Another very important type of benefit provides monetary compensation for lost wages. If you need to file a workers’ compensation claim, it is important to understand how the wage benefit is calculated.

The Minnesota Department of Labor and Industry notes that when filing a claim, you should provide you hourly rate, the number of hours worked per day, the number of days worked per week and the value of other compensation such as meals. You should also submit 26 weeks’ worth of supporting documentation that outlines your average weekly gross wage. In general, you can expect to receive two-third of whatever that average wage is. If you have more than one job, you should include your wages or earnings from all of your employers when requesting workers’ compensation benefits.

Many things apart from a straight salary or hourly rate can impact an ultimate lost wage benefit amount. Overtime or tips, for example, can be included in the calculation. So too can be the value of non-monetary compensation. If you experience shifts in your pay due to seasonality, that can also be factored in. The most recent 26 weeks of earnings will be used to determine an average weekly wage if you are employed part time.

This information is not intended to provide legal advice but general information about workers’ compensation lost wage benefits in Minnesota.

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