Personal Injury Blog

Maximum Average Monthly Wage 2017

Posted By Shook & Stone || 7-Jul-2017

When an injured worker’s claim has been accepted, one of the things that the insurer must calculate is the average monthly wage (“AMW”). Be advised, some insurers will deny calculating the AMW if there is no Temporary Total Disability (“TTD”) owed, however that is improper under the law.

AMW is a very key component in the injured worker’s case. Why? First, AMW determines what amount of money the injured worker will be paid if the injured worker is taken completely off work, or a doctor has given the injured worker restrictions that the employer cannot accommodate. Under Nevada law, the insurer must pay the injured worker 66 2/3% of the injured worker’s AMW. See NRS 616A.065; see also NRS 616C.475. Second, if the injured worker is entitled to a Permanent Partial Disability (“PPD”) rating at the closure of the case, AMW is one of the three (3) categories that determine how much of a settlement the injured worker will receive. If the AMW is not calculated correctly, the injured worker could be leaving thousands of dollars on the table.

In Nevada, the laws actually cap AMW at $878.10 x 150% x 4.33 = $5,703.26. The state average weekly wage for computing disability compensation for fiscal year 2018 is certified by the Nevada Department of Employment, Training, and Rehabilitation, Employment Security Division. In other words, no matter what wages the injured worker is making at the time of the injury, those wages are capped at $5,703.26 per month. Accordingly, if that injured worker has capped out at $5,703.26, the injured worker will only receive 66 2/3% of $5,703.26, totaling $3,802.17 every two (2) weeks. This is if the injured worker is taken completely off work, or a doctor has given the injured worker restrictions that the employer cannot accommodate.

It is advised you seek an experienced attorney who is able to assist in obtaining all benefits that you are entitled to under Nevada law, which includes calculating the correct AMW under Nevada workers’ compensation laws. Failure to do this could be hazardous to your wealth.

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