Calculation of Average Weekly Wage for Temporary and Seasonal Workers
Having the right information and paying the temporary employees properly from the start can save thousands of dollars in a claim.
From lifeguards to holiday retail staff, temporary and seasonal workers play an important role in many industries. When these employees are injured, their wage loss is calculated differently than other employees. Having the right information and paying the temporary employees properly from the start can save thousands of dollars in a claim.
For many years, it was assumed that the average weekly wage for such injured workers should be calculated under the third method of N.C. Gen. Stat. §97-2(5). That method calls for dividing the total wages earned by the weeks worked prior to the injury. This method resulted in temporary workers potentially being paid far in excess of what they would have earned if they had been able to complete the contracts. In Thompson v. STS Holdings, Inc., 213 N.C. App. 26 (2011), the court found that the proper method for calculating the average weekly wage for temporary employees was the fifth method which seeks fairness.
In Tedder v. A7K Enterprises, 238 N.C. App. 169 (2014), the court further clarified the method to calculate “the amount the injured worker would be earning but for his injury”. The method suggested by the court in Tedder has allowed for the fair compensation of seasonal workers and has been generally accepted. Here is a step-by-step plan to calculate average weekly wage for seasonal workers:
Determine the total wages earned by the worker prior to the injury.
Divide the total amount earned divided by the number of days worked to find a daily rate.
Determine the end date for employment if the employee had not been injured and calculate the number of days from first day worked to last day that could have been worked.
Multiply the total number of possible working days by the daily rate.
Take this total and divide it by 52 weeks.
This calculation is likely to be found fair because it considers what the worker would have earned had the worker been able to finish the contract. It is fair to both sides. We should be cautious in applying this method only to temporary or seasonal workers. We should continue to use the third method for employees who are injured prior to working 52 weeks but who were permanent.