One of the most common disputes between employees and employers in workers’ compensation claims involves disagreements over the calculation of the employee’s pre-injury wages, as this figure can significantly impact the value of workers’ compensation monetary benefits. You have the right to legal counsel during a wage calculation dispute, and securing this help may be more affordable than you expect.
If you’re looking for experienced legal guidance to help you maximize your financial benefits in your workers’ compensation claim, turn to the legal team at Meyer, Puklich, & Merriam. We offer free consultations, during which we will explain your rights and our attorney fee structure.
A worker who is injured on the job or is diagnosed with an occupational disease may be entitled to workers’ compensation benefits, including for their lost wages. The workers’ compensation system bases lost wage benefits on a worker’s average weekly wage—the average wage they earned prior to their injury.
In Minnesota, the workers’ compensation law calculates the average weekly wage in several ways based on the worker’s work schedule. For full-time, regularly scheduled employees, a worker can calculate their average weekly wage by multiplying the number of hours they normally work by their hourly wage. Salaried employees can calculate their average weekly wage by dividing their monthly or annual salary by four or 52, respectively.
The system works differently for workers who do not work full time with a regularly scheduled number of hours, including workers who work overtime. In these cases, Minnesota’s workers’ compensation system calculates a worker’s average weekly wage by taking their earnings over the 26 weeks before their injury (including any vacation or holiday pay the worker received) and dividing that number by the number of days the worker worked during that period (including vacation or paid holidays). Next, divide the number of days the worker worked in the 26 weeks before their injury by the number of weeks the worker worked during that period. Finally, compute the average weekly wage by multiplying the worker’s average daily wage by the average number of days they worked per week.
In Minnesota, the official determination of a worker’s average weekly wage can affect their temporary total disability, temporary partial disability, and permanent total disability benefit. For temporary and permanent total disability benefits, workers can receive two-thirds of their average weekly wage, subject to maximum and minimum caps. Workers who return to work at a lower level of earnings can receive two-thirds of the difference between their average weekly wage and their current lower earnings through temporary partial disability benefits.
Perhaps unsurprisingly, the rules regarding wage calculation can lead to disputes between employers—who want to minimize the cost of paying claims or insurance premiums—and employees—who want to maximize the value of their lost-wage benefits while they’re on workers’ comp. These disputes might involve:
An error in calculating your average weekly wage can cause you to receive less than the full benefits you are entitled to under the law. A workers’ compensation attorney can help you by:
Attorneys who represent injured employees in workers’ compensation cases typically work on a contingency fee basis. Under this arrangement, an attorney charges nothing upfront to take an injured worker’s case. Instead, the attorney receives a fee—typically an agreed-upon percentage of the recovery—if and when they recover workers’ compensation disability benefits for their client.
In Minnesota, the workers’ compensation law limits attorneys to 20 percent of the first $130,000 awarded to a client, up to a maximum of $26,000, for injuries that occurred before October 1, 2024. For injuries that occurred before that date but on or after October 1, 2021, attorneys may obtain up to 20 percent of the first $275,000, up to a maximum of $55,000. However, an attorney can petition a workers’ compensation judge to award excess fees if the amount provided under the law does not adequately compensate the attorney for their work.
Alternatively, an attorney who represents an injured worker in a dispute over medical or vocational benefits can receive attorney’s fees from the worker’s employer or the workers’ compensation insurer if the attorney’s contingency fee award does not adequately compensate them. This fee arrangement might arise when the case does not involve a dispute over disability benefits, or when the contingency fee on disability benefits does not provide an adequate fee for the attorney’s work. These medical or vocational benefit fees can provide an attorney with 20 percent of the first $275,000 of medical or vocational expenses for injuries on or after October 1, 2024, or $130,000 of medical or vocational expenses for injuries before October 1, 2024. However, if a dispute involves a change of medical provider, the attorney may request the lower of their total hourly fees or $500.
Your workers’ compensation lawyer can help you maximize your financial recovery by:
Choose a workers’ compensation attorney from Meyer, Puklich, & Merriam to help you with your claim because:
Contact Meyer, Puklich, & Merriam today for an initial consultation with our workers’ compensation lawyers. We’ll explain the importance of wage calculation and what you can expect to pay should we take your case. Remember, consultations are free, and we don’t charge a fee unless we win.
