Average Weekly Earnings (AWE)
Legal basis: LC §4453
Definition
The calculation of an injured worker's pre-injury weekly earnings used to determine temporary and permanent disability benefit rates. AWE is typically based on the highest earnings in the 52 weeks before the injury and includes overtime, tips, and other regular compensation as defined by the Labor Code.
Related Terms
Frequently Asked Questions
What is a Average Weekly Earnings (AWE)?
The calculation of an injured worker's pre-injury weekly earnings used to determine temporary and permanent disability benefit rates. AWE is typically based on the highest earnings in the 52 weeks before the injury and includes overtime, tips, and other regular compensation as defined by the Labor Code.
What is the legal basis for AWE in California workers' compensation?
Average Weekly Earnings is governed by LC §4453 under California workers' compensation law. This statute defines the requirements, procedures, and standards for average weekly earnings in the workers' compensation system as of 2026.
How does average weekly earnings affect a workers' compensation claim?
Average Weekly Earnings plays an important role in determining the outcome of a workers' compensation claim in California. Understanding this concept helps injured workers, attorneys, and physicians navigate the claims process more effectively.