How are workers' compensation benefits calculated for permanent total disability?

The calculation of workers' compensation benefits for permanent total disability is based on the average weekly wage. This amount is derived from the worker's earnings prior to the injury and reflects their typical income over a specified time period. By using the average weekly wage, the benefits aim to provide a fair compensation rate that mirrors what the injured worker would have been earning had they not been disabled. This method allows for a more standardized approach, ensuring that benefits are equitable among workers who may have varied earnings.

The focus on average weekly wage rather than other measures, such as current salary or the highest salary earned in the last five years, ensures that the compensation aligns with the worker's overall earning capacity rather than fluctuations that may not represent their typical income. Using state minimum wage is insufficient for equitable compensation, as it does not account for the actual earning potential of the worker.