People often confuse average weekly wage with an hourly rate or annual salary. They are not the same. An hourly rate is what someone earns per hour worked. A salary is a fixed amount paid over a year. Average weekly wage is a calculated number that estimates what a worker typically earned per week before an injury, often including more than just base pay.

In general, average weekly wage is used to measure lost earning power. Depending on the situation, it can include regular pay, overtime, bonuses, and other earnings tied to the job. In Virginia workers' compensation cases, this figure usually comes from the worker's earnings during the 52 weeks before the injury. If the worker was employed for less than 52 weeks, a different fair method may be used under the Virginia Workers' Compensation Act, Va. Code § 65.2-101.

This number matters because it is the starting point for calculating wage loss benefits. In Virginia, temporary total disability benefits are generally two-thirds of the worker's average weekly wage, subject to the statewide minimum and maximum set each year by the Virginia Workers' Compensation Commission.

A dispute over average weekly wage can change the value of a claim by a lot. That comes up often after irregular work schedules, storm-related overtime, seasonal work, or crash injuries involving stranded trucks on icy I-81 routes. If wages are calculated too low, the injured worker may be underpaid for every weekly benefit check.