Unfortunately, and as hard as it is to voluntarily give up income in a time when you're struggling to make ends meet because of your injury, the answer is yes. According to Georgia workers' compensation law, employer/insurer's are allowed to recoup or recover benefits that were overpaid to an injured worker (fortunately, there are restrictions placed on how far back in time the recovery can reach). If the worker is currently receiving a weekly income benefit or if he or she is entitled to benefits in the future, the employer/insurer can take a credit against those benefits.
The amount of the credit taken against ongoing income benefits is usually worked out between the employer/insurer and the worker (or his or her attorney). For example, if you're currently supposed to be receiving $400.00 per week in TTD benefits, but you were previously paid at an erroneous higher rate which resulted in an overpayment of $2,000.00, an arrangement could be reached whereby you would only receive $350.00 per week until the employer/insurer recovered the full amount of the overpayment.
Even if you aren't entitled to any additional benefits and you don't even work for the employer anymore, a garnishment action can be commenced against you at your current place of employment. Needless to say, this will create an enormous inconvenience and burden on you as you try to move on with your life.
Fair or not, that's the way the law works. The problem is, the vast majority of workers have no idea how workers' compensation benefits are calculated, and they therefore would have no reason to suspect that their employer has made an error in the calculation. Why should an injured worker be punished down the line for innocently receiving an overpayment that was the result of the insurance adjuster's mistake? Moreover, there are many times when the miscalculation in your compensation rate is so small that you'd never have reason to suspect there was an overpayment.
This is precisely the reason why I'm writing this post--to provide basic information for workers to help avoid this potential inconvenience. So, if you have any reason to believe that you're receiving more than you should--such as, you were a part-time employee and your weekly benefit is nearly identical to the paycheck you received prior to your injury--it is a good idea to go ahead and report it to your employer. Chances are, the employer will soon uncover the miscalculation and they will, without a doubt, come after you to recover the money. A little honesty in the beginning can save you from a big headache later on.
Also, it's worth noting that these issues can get really complicated and messy, so it's a very good idea to have an attorney on your side to help ensure that your best interests are fully represented. If you have any questions about your workers' comp case, please let me know. Even if you're not in the Athens, Georgia area, give us a call and we will gladly help you with your case.
Showing posts with label Average Weekly Wage. Show all posts
Showing posts with label Average Weekly Wage. Show all posts
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).
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).
Tuesday, February 15, 2011
Computing Average Weekly Wage
In the event that you suffer an on-the-job injury, it is important to understand both the kinds of benefits to which you are entitled, as well as how to calculate such benefits. Unfortunately, insurance adjusters will occasionally make errors in calculating the amount of benefits which are due to an injured employee, so an understanding of how your benefits are calculated can be a valuable asset if you’ve been hurt at work. This post will very briefly discuss the three (3) methods by which an injured worker’s “average weekly wage” (AWW) is computed under Georgia law.
To determine the amount due to an injured worker for either TTD or TPD benefits (please see my previous post regarding TTD and TPD benefits), the worker’s AWW must first be computed. In most situations, this figure is calculated by taking the average of the total gross wages (pre-tax) earned for the 13 weeks preceding the date of accident. What are the components of these gross wages? AWW encompasses “salary, hourly pay, tips, and the reasonable value of food, housing and other benefits furnished by the employer without charge to the employee which constitute a financial benefit to the employee and are capable of pecuniary calculation.” (Board Rule 260(a)). In other words, if an employee receives $15.00 in gas money each week, this amount will be added to his or her regular salary.
However, there are often situations in which an employee has not been working for substantially the whole of the 13 weeks prior to the injury (like if the employee was hired only 5 or 6 weeks prior to the accident). In those situations, the AWW can be computed by averaging a “similarly situated employee’s” gross wages for the 13 weeks preceding the date of accident. Ideally, a “similarly situated employee” is someone performing the same job, on the same shift, with the same wages.
If the above 2 methods cannot be used, the last method by which an AWW can be computed is by taking the full-time average weekly wage of the employee. In other words, if an employee is paid $10.00 per hour and a full-time work week is 40 hours, then the AWW would be $400.00 per week.
Tip: Again, insurance adjusters will often make errors in calculating an employee’s AWW and will not take into full account all of the potential components of the employee’s gross wages. For this reason, it is important to have an attorney on your side to help you maximize your weekly benefit while you recover from a work injury. Should you have any questions regarding any of the above, please let us know.
To determine the amount due to an injured worker for either TTD or TPD benefits (please see my previous post regarding TTD and TPD benefits), the worker’s AWW must first be computed. In most situations, this figure is calculated by taking the average of the total gross wages (pre-tax) earned for the 13 weeks preceding the date of accident. What are the components of these gross wages? AWW encompasses “salary, hourly pay, tips, and the reasonable value of food, housing and other benefits furnished by the employer without charge to the employee which constitute a financial benefit to the employee and are capable of pecuniary calculation.” (Board Rule 260(a)). In other words, if an employee receives $15.00 in gas money each week, this amount will be added to his or her regular salary.
However, there are often situations in which an employee has not been working for substantially the whole of the 13 weeks prior to the injury (like if the employee was hired only 5 or 6 weeks prior to the accident). In those situations, the AWW can be computed by averaging a “similarly situated employee’s” gross wages for the 13 weeks preceding the date of accident. Ideally, a “similarly situated employee” is someone performing the same job, on the same shift, with the same wages.
If the above 2 methods cannot be used, the last method by which an AWW can be computed is by taking the full-time average weekly wage of the employee. In other words, if an employee is paid $10.00 per hour and a full-time work week is 40 hours, then the AWW would be $400.00 per week.
Tip: Again, insurance adjusters will often make errors in calculating an employee’s AWW and will not take into full account all of the potential components of the employee’s gross wages. For this reason, it is important to have an attorney on your side to help you maximize your weekly benefit while you recover from a work injury. Should you have any questions regarding any of the above, please let us know.
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