Whenever possible, the claimant’s earnings history is to be the basis of their wage calculation. Calculating wages upon anticipated earnings is speculative and, in cases in which the claimant is often laid off, a means of artificially inflating ones wages. Therefore, the Supreme Court ruled that quarterly earnings periods depressed by layoff are to be included in the wage calculation of long term employees. 

What It Means to You

Do not assume that because a claimant was laid off and not actually working for a period of time in the year proceeding the work injury that the method of calculating wages changes in the Claimant’s favor. Employers could benefit significantly by maintaining an employment relationship with temporarily laid off employees. Contact a Cipriani & Werner attorney to confirm that are using the best wage calculation method.