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Teaching Tool · Wage-Loss Calculator

What your checks should be — and where they get shortchanged.

Every wage benefit in workers' comp is built on one number: your average weekly wage. Insurers calculate it fast, and fast calculations famously forget overtime and second jobs. Build yours here and know what the checks are supposed to say.

Reviewed August 2026 Illustrative & educational — state caps and rules vary
$22
40 hrs
5 hrs

What this teaches: in most states, regular overtime belongs in your average weekly wage — usually at the time-and-a-half rate you actually earned. AWWs computed from base pay alone are the single most common underpayment in comp.

$0

What this teaches: many states count wages from all your jobs when the injury keeps you from working them — because the injury took that income too. If you worked two jobs and your AWW reflects one, ask why in writing.

Your illustrative numbers
AWW $990
Weekly check (⅔ rule): about $660 — tax-free
Roughly $2,860 per month while fully off work

Uses the two-thirds formula most states share. Every state also sets minimum and maximum weekly rates that adjust annually — high earners hit the cap, and your state's current figures control. Waiting periods apply to the first days off work in most states, often paid retroactively if disability lasts long enough.

How wage benefits actually work

How a weekly benefit check is calculated Flow diagram: your average weekly wage, including overtime, tips and often a second job, is multiplied by about two-thirds to produce your weekly check, which is tax-free but subject to state caps. Average Weekly Wage (AWW) gross pay · overtime · tips · often your second job too × ⅔ Your weekly check tax-free · within state caps · some states pay 60–80% instead Every check is computed from the AWW — audit it once and the correction repeats weekly.
  • The two-thirds rule. Most states pay 66⅔% of your average weekly wage while a doctor keeps you fully off work — tax-free, which softens the cut more than it first appears.
  • Caps in both directions. States publish minimum and maximum weekly rates each year. If you earn well above average, expect the max to bind; check your state's current number (Texas: tdi.texas.gov · California: dir.ca.gov/dwc).
  • Light duty changes the math, not the principle. Working reduced hours or lighter work at lower pay usually triggers partial benefits — commonly two-thirds of the gap between your AWW and what you now earn. Keep every pay stub; the gap is the benefit.
  • The waiting period. Most states don't pay the first several days of disability — then pay them retroactively if you're out long enough. A missing "first week" isn't necessarily an error, but an unexplained one is worth a written question.

The four classic underpayments

  • Overtime left out of the AWW — check yours against real pay stubs from the year before injury.
  • Second jobs ignored — if the injury stops both jobs, many states count both incomes.
  • Seasonal or variable pay averaged badly — a slow-month snapshot isn't your average; most states look at a longer representative period.
  • Late checks with no penalty — many states owe automatic penalties for late payments. Late plus silent is worth a written question, and a note in your claim file.
The one-sentence audit

Ask the adjuster, in writing: "Please send me the calculation of my average weekly wage, including what pay periods and earnings it used." You're entitled to know — and errors surface fast when someone has to show the math. Underpaid past checks belong in any settlement.