Petrillo & Goldberg Law Blog

While the Average Weekly Wage (AWW) is important when it comes to determining workers' compensation benefits in New Jersey, it can become confusing when applying for benefits.

Maximizing Your Workers’ Compensation: Understanding Average Weekly Wage

While the Average Weekly Wage (AWW) is important when it comes to determining workers’ compensation benefits in New Jersey, it can become confusing when applying for benefits. If you run across any issues with your application for benefits after sustaining a serious injury at work, call Petrillo & Goldberg Law. We have decades of solid experience in this area and can sit down with you to explain the ins and outs of South Jersey AWW. 

New Jersey law requires that all New Jersey employers, who are not covered by Federal programs, have Workers’ Compensation coverage or be approved for self-insurance. The 2024 New Jersey Division of Workers’ Compensation 2024 workers’ compensation benefits rates are set at a maximum of $1,131.00 per week for temporary and permanent disability and a minimum of $317.00.

Workers’ compensation is a “no-fault” insurance program providing medical care, wage replacement, and permanent disability compensation to workers who suffer job-related injuries or illnesses. It also provides death benefits to dependents of workers who have died on the job.

An injured employee receives benefits no matter who is at fault. In return for these guaranteed benefits, a worker does not have the right to file a lawsuit against the employer for pain and suffering or other damages, except in cases of intentional acts.

Why AWW Matters for New Jersey Workers 

AWW stands for average weekly wage. It is the average of a worker’s weekly pay for the eight weeks before sustaining a disabling injury. This figure also includes tips, bonuses, commissions, overtime, and other pay received more than the hourly wage or salary. 

The State maximum is 75 percent of the New Jersey average weekly wage. Benefits received are based on the amount of money earned. When you apply for and receive workers’ compensation, the benefits are based on the amount of money you earn.

To figure out your AWW, you add your total income for the most recent six months and then divide it by 26. If you’ve been injured in a New Jersey workplace accident, identifying your AWW is an important part of understanding the amount of benefits you should receive. Be aware that figuring out your AWW is not just about the amount of money you make in a typical week but whether or not there are some weeks you worked extra hours. This is then reflected in your SAWW. 

The AWW of all workers in New Jersey is currently $1,192.71, up from $1,153.18 a year ago. This is a change of 3.43 percent. When in doubt about your AWW, reach out to Petrillo & Goldberg Law. We’re here to help you understand how it works and sort out any issues you may have along the way. Try to keep track of the changing AWW, as it typically does increase year over year.

The New Jersey Department of Labor and Workforce Development calculates the New Jersey state average weekly wage (SAWW). The SAWW determines reflects New Jersey’s maximum and minimum benefit rates for workers’ compensation claims. The department tabulates worker’s pay earned in the state and then figures out the average wage for all workers. The SAWW is then adjusted to reflect changes in the economy and the wage data.

No matter what your income is, weekly benefits cannot be less than 20 percent of the SAWW. This means a spectrum of benefit amounts, between 20 and 75 percent of the SAWW. The amount of benefits received is based on your AWW, and there are some limitations. For instance, you cannot receive more than 75 percent of the statewide average weekly wage. 

What A Workers’ Compensation Policy Typically Covers for Employees

A workers’ compensation policy covers the following: 

  • Reasonable medical services to treat the job injury or illness.
  • Temporary disability benefits to replace lost wages up to a statutory maximum.
  • Permanent disability benefits to compensate for the continued effects of an injury.
  • Burial and death benefits for dependents in a fatal accident.
  • Coverage for employers of financial liabilities for work-related injuries and illnesses.
  • Legal representation 

Types of Workers’ Compensation Benefits for New Jersey Employees

New Jersey workers injured at work can file a workers’ compensation claim. Depending on the nature of the claim, they may receive the following:

  • Medical Benefits – Including treatment, prescribed medications, and if necessary, hospital care. The employer or the insurance carrier had the right to designate medical providers for all workplace injuries.
  • Temporary Total Benefits (TTB) – If a worker is unable to work for more than 7 days, they are eligible to receive TTB retroactive to the first day of the injury. The benefit is 70 percent of the worker’s AWW. Benefits are provided until the employee returns to work, has hit the statutory 400-week maximum period, or has reached maximum medical improvement.  
  • Permanent Partial Benefits (PPB) – When injuries result in a permanent impairment, benefits are calculated on the functional loss.
  • Permanent Total Benefits (PTB) – If a worker is unable to return to work to perform any type of employment, PTB kicks in for an initial period of 450 weeks. If the claimant remains disabled, the benefits continue. Benefits are based on 70 percent of the AWW. Benefits are not more than the statutory maximum nor lower than the statutory minimum.
  • Death Benefits – The family of a worker who died on the job is eligible for death benefits and funeral expenses to a maximum of $3,500. Weekly benefits are 70 percent of the wage the deceased worker received that does not exceed the statutory maximum.

Importance of Seeking Legal Assistance and Understanding Your Rights Regarding AWW

Workers’ compensation is complicated and it can be very difficult for a worker to sort out all the requirements, filing deadlines, notification rules, and other forms that are required to file a valid claim. At Petrillo & Goldberg Law, we understand what you are going through and know how to help you. 

We strive to ensure you understand each step required to file a workers’ compensation claim.

We make certain you understand your legal rights and work with you step-by-step to ensure your claim is successful. We also explain, in great detail, precisely what your legal rights are and how understanding what the AWW means makes things easier for you moving forward with your claim.

Contact a New Jersey Workers’ Compensation Attorney Today

The law firm of Petrillo & Goldberg has a compassionate team of advocates who have dedicated their careers to ensuring that New Jersey injury workplace accident victims recover the compensation they deserve. 

The injury advocates at Petrillo & Goldberg deal with the insurance companies so accident victims can focus on recovering, returning to work, and moving forward with their lives.

To learn more, call 856-249-9288 to schedule a free consultation. You can also reach us through our online contact form.