How is an employee's Average Weekly Wage (AWW) determined?

The determination of an employee's Average Weekly Wage (AWW) is crucial in workers' compensation cases, as it impacts the benefits an employee is entitled to receive in the event of a work-related injury. The correct answer, which states that AWW is based on 100% of actual earnings, reflects the principle that an employee's wage before the injury represents their earning capacity.

To calculate the AWW, various components of the employee's compensation may be included, such as hourly wages, overtime, and bonuses, effectively giving a comprehensive view of what the employee was earning at the time of the injury. This full accounting ensures that compensation reflects the individual's true financial situation, thus providing a fair basis for benefits.

Understanding this calculation is essential for both employers and employees as it directly influences the amount of compensation an injured worker might receive during their recovery period. Other options that suggest lesser percentages do not fully capture the wage loss experienced by an employee, which could result in insufficient support during recovery.