Calculating Wages in Workers' Compensation Benefits and L&I Claims
The value of time-loss compensation benefits is based upon the wages a person was getting at the time of work injury or occupational disease manifestation. If the person was working a second job, the value of that income must also be included in the wage computation. The Department of Labor and Industries (L&I) computes monthly wages according to RCW 51.08.178.
How to Calculate Wages Under a Workers' Compensation Claim?
Procedurally, there is a computation for regular and continuous employment and a computation for seasonal, intermittent, or part-time employment. Also, there's a "catch-all" computation that considers "like employee" wages. Moreover, bonuses are always applied when the gross monthly wage is calculated. And, generally speaking, L&I should apply the computation that is fair and equitable. Finally, other compensation received as part of the contract for hire must also be included.
Common examples of other compensation include housing, meals, commissions, and the value of employer-paid health care benefits. Tips, for restaurant workers for example, are only included when workers report them to the employer for federal income tax purposes or when the employer distributes them to employees.
What is a Wage Order in an L&I claim?
Typically, once the Department has collected all of the relevant information for computing the monthly wage, it issues a "wage order". This order explains how the Department arrives at the worker's wage rate calculation. Because L&I decides and issues the wage order, injured workers can protest or appeal the decision within 60 days or they become final and binding.
If a wage order becomes final and binding, a worker can't challenge the calculation later. Once a wage order is final, further changes to the computation and time-loss compensation payments only occur if: (1) There is a cost-of-living increase; (2) An offset is applied; or (3) There is a change of circumstance.
What is a Change of Circumstance for Wage Recalculation?
Under RCW 51.28.040, people injured at work can apply for a change in the wage rate computation if a change in circumstances warrants an increase or rearrangement of compensation. If granted, L&I may apply the readjustment up to sixty days prior to the receipt of the application.
Common examples of a change in circumstance warranting wage rate changes include termination of employer-paid health care benefits, a subsequent change to the date of injury or disease manifestation, or changes regarding dependents. To apply for a change in circumstance, an injured worker should send a written request to the claims manager. The written request must explain the change, when it occurred, and a request for recalculation based on the change.
3 thoughts on “Calculating Wages in Workers’ Compensation Benefits and L&I Claims”
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This is a fundamental question when it come to workers comp but it can be complicated to know where to look for info. This is a great resource.
Hello,
I am reaching out because I am seeking a second opinion regarding my Washington workers’ compensation (L&I) claim.
I am now approximately six years into the claim and recently learned that my prior gig work and intermittent employment history were not factored into my wage calculation. I requested that my current attorney pursue a wage recalculation review, but she has declined to do so.
At the time of my injury, I had only been working at the injury job for approximately one month. Prior to that, I worked in film, television, and other gig-based and seasonal employment with varying employers and intermittent work arrangements. My concern is that the wage determination relied only on a very narrow snapshot of my earnings from the short-term job where I was injured and did not accurately reflect my broader employment situation.
I am looking for an attorney who may be willing to review the wage determination, the history of the claim, and whether there are any remaining legal options available. At minimum, I would appreciate a second opinion regarding whether the wage calculation was handled properly under Washington law.
Please let me know if your office would be willing to review the matter or schedule a consultation.
Thank you for your time and consideration.
Because you are currently represented we need to encourage you to re-raise your concerns about your wage calculation with your current attorney. From the perspective of the Washington State Bar Association, your current attorney is in the best position to help you with your claim related issues, and it will be in your best interest to try and work through this with them.