How Average Weekly Wage (AWW) is Calculated for NH Workers' Compensation Claims

When you are injured on the job in New Hampshire, the financial safety net you rely on is directly tied to a legal calculation known as the Average Weekly Wage (AWW). Whether you are a retail manager in Manchester, a factory worker in Nashua, or a seasonal landscaper in Concord, your AWW determines your weekly compensation rate while you heal. The higher your AWW, the higher your workers' compensation checks. Unfortunately, insurance adjusters frequently make errors that undervalue a worker's true earning capacity.

Step-by-Step Process to Calculate AWW in New Hampshire

The state has established specific rules to ensure fairness when calculating wage benefits. The process generally requires the employer and the insurance carrier to follow strict mathematical guidelines.

Step 1: Submission of the Wage Schedule

Your employer is legally obligated to complete and submit Form 76WCA, New Hampshire, Department of Labor, Wage Schedule. This document must accurately report your gross earnings prior to any tax deductions. It is critical that injured workers request a copy of this form to verify the numbers.

Step 2: Determining the Timeframe

According to N.H. Rev. Stat. Ann. § 281-A:15, the standard method calculates your gross earnings over the 26 to 52 weeks immediately preceding the date of your injury. The total gross earnings are then divided by the number of weeks actually worked in that period to establish your base AWW. Under Appeal of Gilbert, 142 N.H. 842 (NH Supreme Court 1998), when evaluating alternative calculation periods, the method that yields the highest, most favorable wage for the injured worker must be applied.

Step 3: Setting the Benefit Rate

Once the AWW is established, your weekly compensation rate for total disability is generally set at 60% of your AWW, subject to maximum and minimum caps established annually by the New Hampshire Department of Labor, Concord.

Handling Complex Scenarios: Concurrent Employment and Seasonal Work

Not every worker has a simple 40-hour-a-week job. New Hampshire law accommodates unique employment situations, but these rules are often misunderstood or ignored by insurance companies.

Concurrent Employment (Working Two Jobs)

Many Granite State residents work multiple jobs to make ends meet. Under N.H. Rev. Stat. Ann. § 281-A:15, III, if you work for two or more employers covered by state law at the time of your injury, your earnings from all jobs are combined to establish your total AWW. New Hampshire law does not require your primary employer to know about your second job or for the positions to be related. The primary employer's insurance carrier pays the combined weekly rate and is then reimbursed for the difference through the state Special Fund under N.H. Rev. Stat. Ann. § 281-A:55. You must provide payroll records or a Wage Schedule from each employer to properly adjust the calculation.

Seasonal Workers

For seasonal workers, such as ski instructors or construction laborers, dividing total earnings by 52 weeks would result in an unfairly low AWW. Instead, the law allows for alternative calculation methods to reflect the worker's true earning capacity during their active season.

Bonuses, Overtime, and Per Diem

Your gross earnings must include more than just your hourly rate. Overtime pay, shift differentials, commission-based sales, and non-discretionary bonuses generally must be factored into the AWW. However, per diem allowances meant solely to reimburse specific expenses (like travel mileage) are typically excluded.

How Much Will You Actually Receive?

In New Hampshire, the law limits how much a person can receive. Under N.H. Rev. Stat. Ann. § 281-A:28, workers are eligible for up to 60% of their AWW. However, this is capped by a state maximum that changes every July. For example, highly compensated workers may hit the state maximum cap, meaning their benefits will not reflect a full 60% of their massive earnings. Conversely, a state minimum applies to protect low-wage earners. A local lawyer from our directory can help ensure your calculation includes every permissible dollar.

How Long Does the Process Take?

Calculating the AWW should happen immediately after the injury is reported. The insurance company generally has 21 days to approve or deny the claim and issue the initial payment based on their AWW calculation. If you discover a miscalculation-such as missing overtime or omitted concurrent employment-it is possible to request a hearing to amend the AWW. Resolving a wage dispute before the Compensation Appeals Board, Concord usually takes anywhere from 3 to 6 months.

Frequently Asked Questions (FAQ)