Thursday, February 24, 2011

Quick Definitions: "Compensation Rate"

An injured worker's "compensation rate" is the amount of money which is payable to an injured worker on a weekly basis for either TTD, TPD or PPD benefits. It is derived from the worker's average weekly wage ("AWW").

For TTD and PPD benefits, the compensation rate is calculated by taking 2/3 of the AWW.

For TPD benefits, the compensation rate is calculated by comparing the AWW of the injured worker prior to the accident to the AWW after the accident. The precise compensation rate is determined by taking 2/3 of the difference between the two AWW's. Thus, if the pre-accident AWW was $400.00, and the post-accident AWW was $300.00, then the compensation rate would be 2/3 of $100.00, or $66.67 (this amount would be paid by the insurer in addition to the worker's regular paycheck).

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