How is the average weekly wage calculated for workers' compensation claims?

The average weekly wage for workers' compensation claims is calculated by averaging the employee's wages earned over a specified period before the injury. This method ensures that the calculation reflects a more accurate and representative income level by taking into account fluctuations in pay and hours worked leading up to the injury.

In Hawaii, the period typically used for this calculation is often the 13 weeks preceding the injury, but it can vary based on specific circumstances and the employer's records. By focusing on this broader timeframe, the average weekly wage can accommodate variations in income due to overtime, fluctuations in hours, or seasonal employment.

This approach helps to provide a fair basis for compensation, allowing workers to receive benefits that are commensurate with their typical earnings rather than relying on a potentially misleading snapshot of income from just one month or from only the highest earnings in a past year. This method avoids bias created by one-off high earnings or low earnings dependent on short-term factors, ensuring that the compensation system remains equitable for workers experiencing job-related injuries.