How is the "average weekly wage" (AWW) defined in Minnesota Workers' Compensation?

In Minnesota Workers' Compensation, the "average weekly wage" (AWW) is defined by calculating the highest earning 26 weeks of the employee’s prior 52 weeks of work. This method is used to ensure that the AWW reflects the employee's earnings during their most productive period within the last year, providing a more accurate representation of their typical income. By selecting the highest earning weeks, this approach accounts for any fluctuations in an employee's work schedule or earnings, such as overtime, that could significantly enhance their earning potential during those weeks. This helps to establish a fair basis for the wage-related benefits in the event of a work-related injury.

In contrast, focusing on the lowest earnings would not provide an accurate measure of the employee's typical earnings and would unfairly reduce the compensation received. A flat rate set by the state does not take into account individual circumstances and variations in earnings across different jobs and industries. Determining AWW solely based on the employee's salary neglects other potential forms of compensation, such as bonuses or overtime, that may contribute to the total earnings during their qualifying period. Thus, calculating the AWW from the highest earning weeks provides a more equitable approach in determining workers' compensation benefits.