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How is the compensation rate determined?
Under the provisions of the Longshore and Harbor Workers' Compensation Act and related laws, an injured employee's compensation rate is based on his or her average weekly wage (AWW) for the year prior to the injury.
To estimate the AWW, add all earnings for the 52 week prior to the injury and divide the total by 52. This will represent a close approximation of the AWW, which is then multiplied by 2/3 to determine the compensation rate for total disability. Compensation rates are subject to maximum & minimum rates in effect for the date of injury. (Minimum benefits do not apply to the Defense Base Act)
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