Short Answer: Probably not!
If your treating physician indicates that you are unable to work, then the insurance company owes you indemnity benefits. Typically, they will calculate this benefit based upon your wages during the four weeks before the accident. This calculation is called your average weekly wage. The insurer must then multiply your average weekly wage by 2/3 to determine your corresponding compensation rate.
This simple calculation is often done incorrectly by the insurance company. The calculation could be done differently depending on your type of employment, schedule of pay, and seasonal nature of your employment.
If an employee is hired for 40 hours per week, the insurance company will multiply your hourly wage rate times 40. If an employee regularly works less than 40 hours per week, the calculation is done by averaging the wages earned in the four full weeks before the accident. If an employee is classified as a part-time employee, the calculation is done by averaging the actual hours worked and multiplying that times the wage rate.
There are additional different calculations based upon whether you are a salaried employee, a moonlighting employee, or a seasonal employee.
We met with a client recently and quickly determined that the insurance company was underpaying her by over $250.00 each week. We demanded that the insurance company correct this mistake and our client was very pleased that we protected her rights and obtained the compensation that was due to her. Not only did the insurance company correct the mistake, but they paid her the difference all the way back to the initial payment. This type of mistake and underpayment happens very often.
If you have a question about whether you are being paid the appropriate amount, contact us today for a free consultation.