Compensation for a worker’s injury under the Defense Base Act (DBA) is based on the worker’s Average Weekly Wage (AWW). Calculating a worker’s AWW can sometimes be complicated under the DBA because there are multiple ways to make the AWW determination based on how the worker conducts his or her work and what type or injury was sustained by the worker.
The first step to figuring out injury compensation under the DBA is to determine the worker’s AWW. There are three different methods used for calculating employee injury compensation, which are based on a 5 working day week schedule, a 6 working day week schedule, or a 7 day week working schedule or a casual working schedule.
Five- And Six-Day Worker AWW Calculations
The calculation for an injured employee’s AWW who works a consistent five days per week schedule or a consistent six days per week schedule is fairly straight forward. First the employees’ annual average earnings must be calculated, and then the annual average earnings are divided by 52 weeks.
Employee Works Substantially The Whole Year Preceding Injury
When an employee has worked in his or her position, or a similar one with a different employer, for substantially the whole year preceding the injury, a five-day worker’s annual average earnings will be calculated by taking his or her average daily wage or salary and multiplying it by 260 days (260 is the number of days a 5 day per week employee would work in a year), while a six-day worker’s annual average earnings will be calculated by taking his or her average daily wage or salary and multiplying it by 300 days (300 is the number of days a 6 day per week employee would work in a year). The worker’s annual average earnings are then divided by 52 weeks to arrive at his or her AWW.
Employee Has Not Worked Substantially The Whole Year Preceding Injury
When an employee has not worked in his or her position, or a similar one with a different employer, for substantially the whole year preceding the injury, the worker’s average daily wage or salary is based on the average daily wage or salary for similarly situated employees. A five-day worker’s annual average earnings will be calculated by taking the average daily wage or salary for an employee in the same type of job in the same regional location as the worker that was injured and multiplying it by 260 days, while a six-day worker’s annual average earnings will be calculated by taking the average daily wage or salary for an employee in the same type of job in the same regional location as the worker that was injured and multiplying it by 300 days. The worker’s annual average earnings are then divided by 52 weeks to arrive at his or her AWW.
Seven Days A Week Or Casual Workers AWW
Sometimes the above formulas do not work for every worker injured overseas or it would be unreasonable or unfair to apply those formulas to the employee’s specific situation. In these situations a reasonable determination as to the worker’s average annual earnings must be made. This can be based on the previous earnings of the injured worker in the position he or she was in at the time of the injury, and the average annual earnings of other workers in the same job type and geographical region as the injured employee, including the reasonable value of his or her services. The average annual earnings are then divided by 52 weeks to arrive at the worker’s AWW.
Compensation For An Injury Using AWW
Compensation for worker’s injuries under the DBA also depend on how the injury is classified. Specifically, if the injury leaves the worker totally disabled or partially disabled and for how long (temporarily or permanently).
- Permanent Total Disability. When a worker is totally disabled permanently and will never be able to return to the type of work he or she did prior to the injury, the worker will receive ⅔ of his or her AWW annually as compensation for the duration that the disability or injury persists.
- Temporary Total Disability. When a worker is totally disabled, if the injury or disability only lasts for a certain amount of time before the worker becomes better and able to work again, the worker will receive ⅔ of his or her AWW for the period of time while the disability or injury persists.
- Permanent Partial Disability. For a scheduled permanent partial disability (i.e., an injury specifically provided for in Section 908 of the Longshore and Harbor Workers Compensation Act), compensation is determined based on ⅔ of the worker’s average weekly wage in light of the percentage of permanent disability (i.e., the amount of use or loss of use of the injured body part). For an unscheduled permanent partial disability (i.e., all other injuries), compensation is determined based on ⅔ of the worker’s loss of wages (i.e., AWW minus the worker’s wage-earning ability after the injury). Compensation is paid for the duration that the partial disability or injury persists.
- Temporary Partial Disability. Compensation for temporary partial disability is based on ⅔ of the worker’s loss of wages (i.e., AWW minus the worker’s wage-earning ability after the injury). Compensation is paid for the duration that the partial disability or injury persists, but will not be paid for a period of more than five years.