In the state of North Carolina, the average weekly wage is controlled by North Carolina General Statute 97-2(5). There are several methods used to determine the average weekly wages. The most common method to calculate the wages are to use your wages earned for the prior year divided by the number of weeks that you have worked. Wages earned will include overtime, tips, bonuses, per diem income and housing income.

If you lost more than seven consecutive days of wages during the prior 52-week period, then you will calculate the average weekly wage by taking the total amount of earnings made during the prior year divided by the number of weeks worked during the past year. A Form 22 is often used to help determine that information.

If the amount of time you have actually worked at the job you were injured on is for an extremely short period of time then you can look at the wages of fellow employees in a similar position. Should that calculation not seem fair then you and the employer can agree upon something similar to that in which you would earn if you were working without the injury.

However, there is a cap on the average weekly wage earnings that you can receive which is called the “max rate,” which was $920.00 in 2015. However, that number changes each year. To see the most current max rate you should look on the North Carolina Industrial Commission’s appropriate page. Unfortunately, this means that should your average weekly wage calculate to be higher than the max rate, you would still only receive the max rate of $920.00 per week.

Calculating the correct average weekly wage is critical in your workers’ compensation case because it helps determine your weekly benefits and will have a big part in any kind of workers’ compensation settlement you may have.