The pay rate for wage-loss benefits under Workers’ Comp is based on your average pre-injury income. Income can fluctuate based on the number of hours you worked, but is overtime taken into consideration?
Generally, the Average Weekly Wage (AWW) you received before your injury is what is used in wage-loss calculations. This includes the actual income you had coming in, not your typical pay rate. This means it does include overtime, as well as any other bonuses or income.
Call Cardamone Law’s Certified Pennsylvania Workers’ Compensation Lawyers for help with your case by dialing (267) 651-7945 today.
Calculating Wage-Loss Benefits in Pennsylvania
Workers’ Comp pays for wage-loss benefits if you have been disabled for at least 7 days, but the rate depends on your income and pre-injury Average Weekly Wage (AWW).
Calculating AWW
Your AWW is based on the wages you made before the injury. If your weekly pay is set and always the same, we use that value.
If you get paid monthly or yearly, we can convert that to weekly pay:
- Multiply monthly wages by 12, then divide by 52.
- Divide yearly pay by 52.
If your pay varies from week to week – which is common with hourly wages and overtime hours – we split the past year up into weeks and look for the best weeks:
- Split the past year into four periods of 13 consecutive weeks.
- Total your wages in each 13-week period.
- Choose the three best 13-week periods.
- Find the average (add those values and divide by 3).
- Divide that by 13.
This will, essentially, give you an average of your best-paid weeks over the past year.
Not Working at All
If you are not working at all, then your benefits are 2/3 of your pre-injury AWW, subject to caps and floors.
Working with Reduced Wages
If you are working, but your wages are less than they were before your injury, you subtract your post-injury AWW from your pre-injury AWW, and your benefits equal 2/3 of that value.
Limits
If you are working and your pay is not reduced at all, you are not eligible for wage-loss benefits.
Rates are always capped at the statewide AWW, which is set by law each year. However, there is also a floor set at whichever is lower:
- Half of the statewide AWW
- 90% of your AWW.
How is Overtime Accounted For?
If you get paid a set weekly, monthly, or yearly rate, overtime is typically not included in that. That means that you would only use those values (converted to weekly rates) when finding your AWW.
However, if your pay includes overtime or your pay might change from week to week (because of varied hours or overtime), then you have to manually calculate your AWW using the formula discussed above.
This accounts for overtime automatically, because overtime wages are included in the weekly pay totals used in that AWW calculation.
Can I Work Overtime While on Workers’ Comp?
Your ability to work at all while on Workers’ Comp – let alone overtime – is something you need to discuss with your Pennsylvania Workers’ Comp lawyer.
Can I Work?
You may be able to work while receiving benefits if your doctor approves it. You may have light duty or other modified duty requirements to follow, and you need to make sure any work you do while on Workers’ Comp meets these restrictions.
You also need to report all income while on Workers’ Comp.
Is Overtime Against Work Restrictions?
Many work restrictions for injured and disabled workers prevent you from working your full pre-injury hours. This often means that overtime is not allowed because it would keep you on your feet too long or result in overexertion.
If you work overtime despite restrictions from your doctor, you could jeopardize your recovery and your benefits.
Wage-Loss Calculations
Remember that wage-loss calculations take 2/3 of the difference in pre- and post-injury AWWs for those working while injured. If your overtime increases your wages to the point where you are no longer facing reduced wages, you might be kicked off wage-loss benefits.
FAQs for Workers’ Comp Pay
Do I Qualify for Wage-Loss Benefits?
Workers only qualify for wage-loss benefits if their injury is work-related and it has disabled them for at least 7 days.
What Are “Indemnity Benefits”?
Indemnity benefits are just another name for wage-loss benefits. These are the benefits Workers’ Comp pays you if your earning power is reduced because of your disabling injury.
What if I Was Injured Working Overtime?
As long as you were injured while performing your job, it doesn’t make a difference if that was during overtime hours or during your normal hours. So long as you were serving your employer’s interests, your injury should still be covered as a “work-related” injury.
If I Can Work, Can I Still Get Benefits?
If your doctor determines you can return to work and sends you a Notice of Ability to Return to Work, you are actually obligated to go back to work. You may be able to do this and still get benefits.
Medical benefits continue as long as you still need medical care for your work-related injury. They do not stop just because you are working again.
Your work while injured might not make up the difference in lost wages, even with potential overtime, and you may still receive wage-loss benefits for 2/3 of the difference in pre- and post-injury AWWs.
What if My Employer Won’t Pay Overtime?
Your right to overtime might be dictated by law or by an agreement or contract with your employer. We must base calculations for Workers’ Comp off of the actual pay you received, but if your employer shorted you and refused to pay overtime you were entitled to, then those numbers would be incorrect.
Talk to your attorney about how you can correct for unpaid overtime or wages that your employer illegally refused to pay.
Call Our Workers’ Comp Lawyers in Pennsylvania Today
For a free case evaluation, call Cardamone Law’s Philadelphia Workers’ Compensation lawyers at (267) 651-7945.
