The #1 Workers’ Comp Mistake That Costs You Thousands!

I’m breaking down everything you need to know about average weekly wage—no legal jargon, just straight talk. We’ll cover how it’s calculated, common mistakes people make, and what you can do to make sure you’re not missing out on money you’re owed.

What is Average Weekly Wage (AWW) and Why is it So Important?

Your average weekly wage (or AWW) is basically the starting point for how much you’ll get paid while you’re out on workers’ comp. If it’s off—even by a little—every check you get will be off too, and that can add up to thousands over time.

Here’s the deal: they usually take two-thirds of your AWW and multiply it by your disability percentage. That gives you your weekly benefit. So if your AWW is $900 and you’re totally disabled, you’d get $600 a week. But if they say it’s $800 instead, now you’re only getting $533. That’s $67 a week you’re missing—over a year, that’s almost $3,500 gone.

How AWW Is Calculated

Usually, the insurance company takes your gross earnings from the 52 weeks before your injury and divides by how many weeks you actually worked. That works if you worked the full year. But if you took time off for vacation, were out sick, or had any unpaid time, dividing by 52 can drag your number down—and so do your benefits.

A few things that can change the math:

• If you didn’t work a full year, your earnings should be divided by the actual weeks you worked—not 52.
• If you’re part-time or seasonal, there are different methods to figure it out.
• Gaps in your work history? Those matter too and need to be handled right.

Statutory Caps and Minimums: The Limits You Need to Know

Even if your AWW is on the higher side, there’s a limit to how much you can actually get in weekly comp benefits—and a minimum too. These limits are called statutory caps and minimums, and they’re set by the state.

Here’s the deal:

• You’re generally entitled to two-thirds of your AWW during total disability.
• But you can’t collect more than the state’s maximum benefit. In New York, for example, that cap is $1,222.14 per week (as of July 1). So even if your AWW is $2,000, you’re not getting two-thirds of that—you’re getting capped at $1,222.14.
• On the flip side, the minimum in New York is $325 a week—unless your AWW is lower than that, in which case you get your full wage.

These numbers change every July, based on the statewide average wage. And while a $20 shift might not sound like much, it can add up to thousands over the course of your case.

How Can You Prove Your Income to Get the Highest AWW Possible?

In workers’ comp, it’s not just what you earned—it’s what you can prove you earned. The insurance company’s not taking your word for it, so you need solid proof to back it up.

Things that help:

• Pay stubs
• W-2s or tax returns
• Direct deposit slips
• Work logs or calendars
• Screenshots of deposits, tips, or cash payments

If you were paid in cash or got tipped a lot, keep anything that shows what you made—old envelopes with amounts and dates scribbled on them can actually go a long way.

A good lawyer will go through your records line by line and compare them to what the insurance company reported. Even small mistakes—like $10 off a week—can turn into thousands over time.

Boosting Your AWW with a Second Job

Got a second job or side hustle when you got hurt? That extra income might count toward your AWW—and that could mean bigger weekly checks. But only if you say something and can show proof.

This is called concurrent employment, and it’s one of the easiest ways to bump up your benefits. It counts if:

• You were working both jobs when you got hurt
• That second job would’ve been covered by comp if you were hurt there too (most normal jobs are)

Some people worry that bringing up a second job might somehow affect that other employer—but it won’t. Unless you got hurt working that job, they’re not involved at all. We’re just using your earnings to get you what you deserve from the injury you did have.

What Are the Biggest Mistakes People Make With Their AWW?

When it comes to workers’ comp, small mistakes can mean big losses. Here are the ones I see all the time:

• Trusting the insurance company’s math without checking
• Not giving your lawyer all your income info
• Leaving out a second job
• Waiting too long to say something
• Letting them divide by 52 even if you didn’t work all 52 weeks

The fix? Stay on top of it. Look over your numbers, speak up early, and give your lawyer everything you’ve got. A little effort now can save you a lot later.

If you don’t work full-time year-round, your AWW needs to be calculated differently—and carefully.

• Seasonal or part-time? Your wage should be based only on the weeks you actually worked.
• New to the job? They should divide your earnings by how long you’ve really been there—not the full year.
• Not enough history? Your employer might use a “similar worker” to estimate what you would’ve earned—but we need to make sure it’s a fair comparison.
• Under 25? You might qualify for a wage expectancy bump, which accounts for future raises you likely would’ve earned.

If any of this sounds like you, make sure your lawyer knows. These details can make a real difference.

Contact Us For Help With Your Workers' Compensation Case

If you’ve got questions, think something might be off in your case, or just want someone to take a closer look, I’m happy to help. Give me, Rex Zachofsky, a call at 212-406-8989 and let’s talk it through. You’d be surprised how much of a difference one conversation can make.