It is vitally important to calculate the average weekly wage (AWW) following an on the job injury in a Defense Base Act (DBA) claim. It is of utmost importance that the AWW be calculated correctly, because the AWW controls how much money you will receive from the insurance carrier following an accident. Moreover, the AWW can significantly impact the value of any settlement received in a DBA claim.
Section 10 of the Longshore and Harbor Workers’ Compensation Act provides three methods of calculating the AWW. Section 10(a) deals with five day a week workers, and Section 10(b) deals with six day a week workers. As most overseas workers are logging in seven day a week work schedules, we will not address those two sections here. However, the Act provides a third method of calculating the AWW, found in Section 10(c):
“If either [subsection 10(a) or 10(b)] cannot reasonably and fairly be applied, such average annual earnings shall be such sum as, having regard to the previous earnings of the injured employee and the employment in which he was working at the time of his injury, and of other employees of the same or most similar class working in the same or most similar employment in the same or neighboring locality, or other employment of such employee, including the reasonable value of the services of the employee if engaged in self-employment, shall reasonably represent the annual earning capacity of the injured employee.” Continue reading →