Determining Average Weekly Wages in Alabama For Workers' Compensation Purposes
In Ex parte Dolgencorp, Inc., the Alabama Supreme Court examined Ala. Code § 25-5-57(b) that defines how to compute compensation and determine average weekly wages. The statute provides for the calculation based on the employee's compensation for 52 weeks immediately preceding the injury. The statute further provides that if an employee has not worked for 52 weeks prior to the injury, the average weekly wage shall be calculated by dividing the employee's compensation by the number of weeks the employee earned wages immediately preceding the injury. Here, the plaintiff suffered an on-the-job injury after working 33 weeks for Dollar General. The Alabama Supreme Court, noting that the Workers' Compensation Act was passed to minimize litigation over work related injuries, found that the trial court's use of the second method of determining average weekly wages was accptable so long as the result is just and fair to both parties.
Practice Pointer When an injured employee pursues a claim for workers' compensation benefits, it is important to work with the workers' compensation carrier and/or third party administrator to comply with the various provisions of the statute, including how to calculate average weekly wages.
