A very common question claimants have following a workplace injury is why their weekly wages are so low. The purpose of workers’ compensation is simple: to provide financial support to workers injured in a work-related accident. Arkansas law provides that claimants are owed only a portion—specifically, two-thirds—of their average weekly wage while being off work, meaning these benefits do not fully match the employee’s regular paycheck. These benefits are intended to help cover ongoing bills and expenses during recovery. While there are exceptions to this general rule, the amount owed is set by state law and may change depending on the year the injury occurred.
How Is Average Weekly Wage Calculated?
The amount a claimant may receive in weekly off-work benefits is determined by what is called a “comp rate.” The comp rate is based on the worker’s average weekly wage. This benefit is typically paid per week and is calculated using the standard method of two-thirds of the average weekly wage.
This number is calculated using the worker’s wages over a period of several weeks, up to fifty-two weeks, and takes into account the number of days worked prior to when the injury occurred. Overtime wages also count toward the average weekly wage.
Employees may need to submit a claim form to verify their wage information.
Factors Affecting Benefits
Several factors can influence the amount of workers compensation benefits an injured worker receives each week. The most significant is the calculation of the average weekly wage, which forms the basis for determining the weekly wage payments. However, even if a worker is entitled to two-thirds of their average weekly wage, the actual amount received may be affected by the state’s maximum benefit cap, as well as deductions for medical expenses or rehabilitation costs.
The type and severity of the injury also play a major role. For example, if an injured worker is unable to return to their job, they may be eligible for additional benefits, such as vocational rehabilitation or permanent disability payments. On the other hand, if the worker can return to work in a limited capacity, their benefits may be adjusted based on their new earnings.
The process of verifying eligibility for benefits can require injured workers to provide detailed information about their job, earnings, and medical treatment. This may include submitting forms, pay stubs, or a doctor’s note to confirm the extent of the injury and the inability to work. In some cases, delays or errors in this process can result in lower or delayed payments.
Ultimately, the workers compensation system is designed to protect employees and help them recover from workplace injuries. However, the benefits an injured worker receives can vary widely depending on their specific situation, the data provided, and how the claim is processed. If you believe your weekly wage is too low, it’s important to review your case, verify your earnings, and follow the required steps to ensure you receive the benefits you are entitled to.
Is There a Cap on What a Claimant Can Receive in Workers Compensation?
Yes. In Arkansas, the maximum weekly payout a worker can receive is set by the state and may be updated each year. $835 is the maximum weekly payout a worker can receive. This is based on an average weekly wage of $981.89.
For example, in Pennsylvania, the maximum weekly compensation rate for 2026 is set at $1,394.00, which is two-thirds of the employee’s average weekly wage, subject to minimum and maximum adjustments. This illustrates how maximums can vary by state and year.
Is There a Waiting Period for Back Pay of Lost Wages?
Yes. Employers do not have to start paying what are called TTD benefits until the employee has missed 14 consecutive days (two consecutive weeks) of work.
At that time, the employer is required to pay two weeks in back pay for the days missed.
When Am I Entitled to Lost Wages?
A person who is within their healing period, or actively treating with a doctor, is entitled to TTD benefits while they suffer a complete incapacity to work, and this entitlement depends on the individual’s recovery process.
There are different situations, such as partial disability or inability to return to work, where additional workers’ compensation benefits or assistance may apply.
This usually means the employee has been taken off work by their doctor. An employee may also be eligible for TTD benefits when they are under a doctor’s care with restrictions, and their employer does not offer them work within those restrictions.
Do You Disagree With the Amount of Wages You Are Receiving?
Do you think your employer owes you higher wages? The lawyers at the Law Offices of Craig L. Cook are here to answer your questions regarding your workplace injury. Remember, you may need to sign claim forms to authorize the wage recovery process.
