Different Factors that Affect The New Jersey Workers’ Compensation Rate

Under New Jersey’s Workers’ Compensation Law, temporary and permanent disability benefits are controlled an injured employer’s earned wages prior to the onset of the injury or disability.  Therefore, in order to determine what your benefits are, your NJ worker’s comp attorney will first need to define what your wages were prior to your workplace injury.

How your attorney or the workers’ compensation liability carrier calculates your weekly or daily wages depends upon on how you are paid. Below are four different ways an employee can earn wages:

Rate of Wage Fixed by Output

If your wages are your output, daily wages are calculated by dividing the number of days you were actually employed into the total amount you earned during the previous six months. So, if you worked 30 days in the past six months and made $600, you divide $600 by 30 days, for a wage of $20 per day.

Hourly Wages

If you are paid hourly wages, the daily wage is calculated by multiplying your hourly rate by the typical workday for your particular profession. However, if it is determined that you have worked less than the customary days for your particular line of work, your daily wages will be determined by multiplying the hourly rate by the number of hours you regularly performed.

Gratuities

If you earn gratuities (or tips) as a regular part of your regular work, it will included in your weekly wage if you have kept a regular or weekly record of the amounts received. If you have not kept a record, then the Judge of Compensation or Referee can fix the average amount of weekly gratuities you earned as part of your wages.

Wages as Part of Lodging and Boarding

If your wages are paid through board and lodging, your average weekly wages will be valued at a flat rate of $25.

Contact an Experienced New Jersey Workers’ Compensation Attorney

For more information about calculating your wages for the purposes of determining your workers’ compensation benefits, call the Law Offices of Dan T. Matrafajlo at (908) 248-4404 to schedule a complimentary consultation with one of our experienced NJ worker’s comp attorneys. We have offices in Elizabeth, North Brunswick and Newark, New Jersey to better serve you.