Wage loss benefits (temporary total disability, temporary partial disability and permanent total disability are calculated pursuant to AS 23.30.220. There are 10 different formulas.
The most common formula is used when an employee’s earnings are calculated by the day, hour of output. In that case, the amount is determined by looking at the best of the previous two years and dividing the gross wages by 50. So if the employee’s best earning was $35,000 in one of the two years preceding the injury, his gross weekly wage is $35,000 divided by 50 equaling $700 per week.
The employee would not receive $700 for the wages lost while he is unable to work because of his injury. Once the gross weekly wage is computed, then you need to go to the Alaska Workers Compensation Board website and plug that into the Benefit Calculator: http://labor.state.ak.us/wc/benefitcalculator.htm.
The amount of the benefits is dependent upon the year in which the employee was injured. If he was injured on 1/1/14 and had a “spendable weekly wage” of $700, then he would be entitled to $454.44 per week if he is filing taxes as single with 1 dependent. If he was injured on 1/1/15 instead, he would receive $454.79 per week.
Cost of Living Adjustments (COLA) would be applied of the employee lives out of the state of Alaska which could increase or decrease the amount of money he receives.
Keenan Powell has practiced Workers Compensation law in the State of Alaska for over 30 years and has dedicated her practice to Workers Compensation representing injured Alaskans handling hundreds of cases. www.keenanpowell.com.
All consultations are free. To make an appointment, use the contact form on this website or call: 907 258 7663.