Calculating Your Average Weekly Wage (AWW) for Idaho Workers' Comp Benefits
In Idaho, your Average Weekly Wage (AWW) determines your Temporary Total Disability payments, which are usually calculated at 67% of your AWW under Idaho Code § 72-408. The formula factors in gross earnings but strictly excludes overtime and premium pay for hourly workers under Idaho Code § 72-419(4)(a).
Understanding Average Weekly Wage in Idaho
If you are seriously injured at work in Nampa, Coeur d'Alene, or Boise, and your doctor orders you to stay home, how do you pay your mortgage? In Idaho, the workers' compensation system provides Temporary Total Disability (TTD) benefits. To determine exactly how much money you receive every week, the insurance company must mathematically calculate your Average Weekly Wage (AWW). Under Idaho Code § 72-408, an injured worker is typically entitled to 67% of their pre-injury AWW, subject to statutory minimums and maximums under Idaho Code § 72-409. This calculation is frequently the subject of disputes, as a miscalculation by the insurance adjuster can cost you thousands of dollars in lost benefits. You can find experienced local attorneys on our site to ensure your AWW is calculated correctly.
How the AWW is Legally Calculated
The rules for calculating your AWW are clearly and strictly defined under Idaho Code § 72-419. If your wages are fixed by the year, Idaho Code § 72-419(3) dictates taking your annual salary and dividing it by 52. However, for most hourly, daily, or piece-rate employees, Idaho law uses a more favorable quarterly calculation under Idaho Code § 72-419(4)(a). The 52 weeks prior to your injury are divided into four 13-week quarters; the adjuster selects the single quarter with your highest earnings and divides that amount by 13, shielding you from seasonal or temporary work slowdowns.
Calculating Overtime and Bonuses in AWW
Many injured workers assume overtime will boost their weekly check, but Idaho law treats these earnings differently. Under Idaho Code § 72-419(4)(a) and Idaho Code § 72-419(4)(b), hourly wage calculations specifically state that wages are computed "not including overtime or premium pay." Furthermore, under IDAPA 17.01.01.401.03, the Idaho Industrial Commission defines shift differentials and overtime as premium pay, excluding them from the AWW base. However, bonuses paid over your base rate that are contingent upon increased physical exertion or efficiency under your contract of hire can be included pursuant to IDAPA 17.01.01.401.01.
How Seasonal and Agricultural Wages Are Assessed
Idaho has a massive and vital agricultural sector. If you are a seasonal worker (such as a harvest worker, a ski instructor in Sun Valley, or a seasonal landscaper), your AWW calculation is different. Under Idaho Code § 72-419(6), for seasonal occupations that do not customarily operate throughout the entire year, your average weekly wage is taken to be one-fiftieth (1/50) of the total wages you earned from all occupations during the twelve (12) calendar months immediately preceding the injury.
What If You Hold Multiple Jobs (Concurrent Employment)?
Many hardworking Idahoans hold two or three jobs to make ends meet. If you are injured at your part-time retail job but can no longer perform your full-time construction job because of the injury, your AWW can include the wages from all your employers. Under Idaho Code § 72-419(9), as long as your primary employer was aware of your concurrent employment prior to the injury, your total combined wages from both employers will be used to calculate your true AWW.
Maximum and Minimum TTD Limits
No matter how high your AWW is, Idaho imposes statutory caps and floors governed by Idaho Code § 72-408 and Idaho Code § 72-409. The maximum TTD rate is set at 90% of the state's average weekly wage, which is adjusted every year on January 1st by the Idaho Industrial Commission, Boise. Conversely, Idaho Code § 72-409 establishes a minimum benefit floor, usually set at 45% of the state's average weekly wage, ensuring that low-wage workers still receive enough financial support to survive during their physical recovery.
Frequently Asked Questions (FAQ)
Are my workers' compensation TTD benefits taxed?
No. Under both federal and state law, workers' compensation wage loss benefits are completely tax-free. You do not report them as taxable income on your annual tax returns.
Does the insurance company calculate my wage before or after taxes?
Your Average Weekly Wage is calculated using your gross earnings, meaning the total amount you earned before any taxes, health insurance premiums, or 401k contributions were deducted.
What if I was only at my job for two weeks before getting hurt?
If you were employed for a very short time, the insurance company will calculate your AWW based on the wages of a similar employee doing the same job, or by projecting your hourly rate over a standard 40-hour work week.
Do fringe benefits like health insurance count toward my AWW?
Generally, fringe benefits such as employer-paid health insurance premiums or retirement match contributions are not included in the calculation of your Average Weekly Wage in Idaho.
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