Workers Compensation
Claims for Lost WagesAn employee who suffers an on the job injury may be entitled to certain disability benefits.
How are lost wages calculated?
An injured employee's lost wages are calculated by his or her "average weekly wage." For regular employment, the average weekly wage is calculated by multiplying the injured employee's daily wage by the number of weeks worked.
If employment is irregular, a different system is used. Wages are calculated by (1) dividing the employee's earnings in the 26 weeks prior to the injury by the number of days worked. An employee's earnings include overtime pay, tips, allowances, and, occasionally, bonuses. (2) The number of days worked in the 26 weeks prior to the employee's injury is then divided by the number of weeks worked. This is the employee's daily wage. (3) The daily wage is then multiplied by the number of days normally worked per week to determine the employee's "average weekly wage."
Minnesota's worker's compensation statutes also have presumptive wage rates for those employed in construction, mining or in seasonal industries. Minnesota law presumes that those employed in these industries work five days per week.
Temporary Total Disability Benefits
An employee who is temporarily but totally disabled may be entitled to temporary total disability benefits. An employee can collect two-thirds (2/3) of one's weekly wage at the time of the injury. Minnesota law has established limitations on how long these benefits are payable, as well as various reasons for their discontinuance.
Temporary Partial Disability Benefits
An employee who is injured, but who returns to work and temporarily earns a lower wage than before his or her injury, may be entitled to temporary partial disability benefits. An employee may collect two-thirds (2/3) of the difference between his or her pre-injury and post-injury wage. It is a good idea to consult an attorney because this wage loss benefit is payable for different lengths of time, depending on the date of one's work-related injury. An employee injured at work after October 1, 1992 is entitled to 225 weeks of temporary partial disability payments, and cannot collect more than 450 weeks of payments.
