Under Louisiana law, the calculation of an injured worker’s average weekly wage (AWW) determines how much compensation they receive while unable to work. The legal foundation for this calculation is found in Louisiana Revised Statutes (LA-R.S.) 23:1021(13). Below is the full statutory language, followed by an explanation of what it means in practical terms.
Louisiana Revised Statutes 23:1021 (13)
(13) “Wages” means average weekly wage at the time of the accident. The average weekly wage shall be determined as follows:
(a) Hourly wages.
(i) If the employee is paid on an hourly basis and the employee is employed for forty hours or more, his hourly wage rate multiplied by the average actual hours worked in the four full weeks preceding the date of the accident or forty hours, whichever is greater; or
(ii) If the employee is paid on an hourly basis and the employee was offered employment for forty hours or more but regularly, and at his own discretion, works less than forty hours per week for whatever reason, then, the average of his total earnings per week for the four full weeks preceding the date of the accident; or
(iii) If the employee is paid on an hourly basis and the employee is a part-time employee, his hourly wage rate multiplied by the average actual hours worked in the four full weeks preceding the date of the injury.
(iv) A part-time employee, as defined in R.S. 23:1021(9) and who is employed by two or more different employers in two or more successive employments, shall be entitled to receive benefits as follows:
(aa) If an employee is employed by two or more different employers in two or more successive employments and the employee incurs a compensable injury under the provisions of this Chapter in one of the employments, the employer in whose service the employee was injured shall pay the benefits due the employee as provided in this Chapter.
(bb) If the employee is a part-time employee in one of the successive employments, is injured in that employment, but as a result of the injury also incurs loss of income from other successive employments, that employee shall be entitled to benefits computed by determining wages under the provisions of this Subsection using his hourly rate in employment at the time of injury and using the total hours worked for all employers of the part-time employee, but not to exceed his average, actual weekly hours worked or forty hours weekly, whichever is less.
(v) For an employee in seasonal employment, his annual income divided by fifty-two.
(aa) For purposes of this Subparagraph, seasonal employment shall be any employment customarily operating only during regularly recurring periods of less than forty-four weeks annually.
(bb) If the employee was not engaged in the seasonal employment more than one year prior to the accident, his annual income shall be the average annual income of other employees of the same or most similar class working in the same or most similar employment for the same employer or, in the event that the employee was the only individual engaged in that specific employment, then his annual income shall be the average annual income of other employees of the same or most similar class working for a neighboring employer engaged in the same or similar employment.
(b) Monthly wages. If the employee is paid on a monthly basis, his monthly salary multiplied by twelve then divided by fifty-two.
(c) Annual wages. If the employee is employed at an annual salary, his annual salary divided by fifty-two.
(d) Other wages. If the employee is employed on a unit, piecework, commission, or other basis, his gross earnings from the employer for the twenty-six week period immediately preceding the accident divided by the number of days the employee actually worked for the employer during said twenty-six week period and multiplied by the average number of days worked per week; however, if such an employee has worked for the employer for less than a twenty-six week period immediately preceding the accident, his gross earnings from the employer for the period immediately preceding the accident divided by the number of days the employee actually worked for the employer during said period and multiplied by the average number of days worked per week.
(e) Exceptions. For municipal police officers, additional compensation paid by the state pursuant to R.S. 40:1667.3 shall not be included in the calculation and computation of total salary or average weekly wage to the extent such officer continues to receive such additional compensation during the period of his disability.
(f) Income tax. In the determination of “wages” and the average weekly wage at the time of the accident, no amount shall be included for any benefit or form of compensation which is not taxable to an employee for federal income tax purposes; however, any amount withheld by the employer to fund any nontaxable or tax-deferred benefit provided by the employer and which was elected by the employee in lieu of taxable earnings shall be included in the calculation of the employee's wage and average weekly wage including but not limited to any amount withheld by the employer to fund any health insurance benefit provided by the employer and which was elected by the employee in lieu of taxable earnings shall be included in the calculation of the employee's wage and average weekly wage.
(g) Date of accident. In occupational disease claims the date of the accident for purposes of determining the employee's average weekly wage shall be the date of the employee's last employment with the employer from whom benefits are claimed or the date of his last injurious exposure to conditions in his employment, whichever date occurs later.
Breaking Down the AWW Calculation
When an employee gets hurt on the job, understanding how their wage replacement benefits are calculated becomes a big deal. That’s because the amount they’ll receive depends on the Average Weekly Wage (AWW), which is based on how much they were earning before the injury. The formula for figuring out the AWW can be more complicated than it seems at first, especially depending on the type of work the person was doing.
Key Points to Understand
Full-Time Workers: For people who work full-time (like 40 hours a week), the AWW calculation is simple. It’s just the number of hours they work per week multiplied by their hourly pay. So, if someone is earning $15 an hour and working 40 hours, their AWW is $600.
Part-Time Workers: For those who work part-time, things get trickier. The calculation is based on how many hours they actually worked in the four weeks before the injury. And for people with more than one job, their wages from all jobs get added together—just up to 40 hours a week. So, if you worked two part-time jobs and each paid $10 an hour for 20 hours a week, your AWW would be calculated based on both jobs.
Seasonal and Commission-Based Workers: For workers like those in seasonal jobs or people who earn commissions, the calculation is more detailed. Seasonal workers’ AWW is based on how much they usually make in a year, divided by 52 weeks. Commission-based workers may have their AWW calculated by looking at how much they earned over the last few months.
Exclusions: Certain things you might think count toward your wages, like non-taxable benefits (for example, health insurance or retirement contributions), don’t count unless you chose them over regular taxable wages.
Occupational Diseases: If the injury is caused by a long-term condition like an occupational disease, the “date of accident” is different. It could be the last day the person worked or the last day they were exposed to harmful conditions.
Understanding these rules is essential for injured workers, employers, and attorneys so that workers can get the right compensation. If everyone knows exactly how AWW is calculated, it helps ensure that workers aren’t left with less than they’re entitled to, based on Louisiana’s workers’ compensation laws.
Understanding Your True Worth: A Guide to Average Weekly Wage Calculations
Life changes dramatically after a workplace injury. Among the many challenges you'll face, understanding how your wages translate into compensation shouldn't be one of them. The Average Weekly Wage (AWW) calculation—while complex on paper—directly impacts your ability to maintain financial stability during recovery.
Your work pattern matters. Whether you're pulling full-time hours, balancing part-time shifts, managing seasonal work, or earning through commissions, each situation requires a nuanced approach to accurately reflect your real earnings. This isn't just about numbers—it's about ensuring your compensation genuinely reflects your contribution and supports your recovery journey. Burnham Law Firm specializes in securing the compensation you've earned.
Get the right support—your recovery starts with the right legal guidance.
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