Reviewed by Laurence P. Banville, Esq.The New York workers’ comp formula
Workers’ Compensation Law §15 sets the core calculation:
Weekly benefit = AWW × 2/3 × percentage of disability
A worked example: if your average weekly wage is $900 and you are rated 100 percent temporarily disabled, your weekly check is $600 — subject to the state maximum in effect when you were hurt. If you are rated 50 percent partially disabled because you can do some work but not full duty, your weekly check drops to $300.
Your date of injury controls which cap applies. New York updates its maximum weekly benefit each July 1; the ceiling fixed on the day you were hurt stays with your claim even as the state revises rates for newer injuries.
How your average weekly wage is established
The Workers’ Compensation Board divides your total gross earnings over the 52 weeks before your injury by 52. If you worked fewer than 52 weeks, the Board uses a comparable earnings approach. Several rules matter:
- Concurrent employment. If you held more than one job when you were injured, wages from all employers are combined to set your AWW.
- Seasonal or irregular work. The Board looks at what a comparable worker in the same trade earns on a full-time basis when your own schedule was irregular.
- Overtime and tips. Regular, predictable overtime and reportable tips count toward your AWW; sporadic or voluntary overtime generally does not.
Because every future benefit is a fraction of your AWW, a dispute over this figure can affect your recovery for the life of the claim.
Temporary total vs. temporary partial disability rates
While you are still recovering, your weekly benefit depends on how disabled you are:
- Temporary total disability (TTD). You cannot work at all. Your rate is AWW × 2/3, capped at the state maximum for your injury year.
- Temporary partial disability (TPD). You have returned to light-duty or reduced work at a lower wage. Your rate is 2/3 of the difference between your pre-injury AWW and your current earning capacity — not two-thirds of your full wage.
The Board can reclassify your disability level as your medical condition changes, which is why the weekly check is not necessarily static throughout your claim.
Permanent disability and how the final rate is set
Once your condition reaches maximum medical improvement, the Board determines whether you have a permanent disability. Two tracks apply under New York law:
- Schedule loss of use (SLU). Arm, leg, hand, foot, eye, and ear injuries receive a fixed number of weeks of benefits based on the body part and degree of impairment, multiplied by your 2/3 AWW rate. The schedule is published in Workers’ Compensation Law §15(3).
- Non-schedule loss (LWEC). Back, neck, and other non-extremity injuries are rated for loss of wage-earning capacity. The Board assigns a percentage, and benefits are paid for a number of weeks that corresponds to that percentage. A 75 percent LWEC rating, for example, triggers a defined benefit term at your 2/3 AWW rate.
Does the rate change as you recover?
Yes, in either direction. Moving from total to partial disability reduces your weekly check to the TPD formula. If your condition worsens after a period of recovery, you can file a reopening application and ask the Board to reclassify your disability upward. Once a permanent classification is made and your case closes, changing it requires showing a change in medical condition or circumstances. Because the formula affects every check from injury to resolution, understanding it early — and making sure your AWW is correctly established — protects the full value of your claim.
Frequently asked questions
How is workers’ comp calculated in New York?
Your weekly benefit equals two-thirds of your average weekly wage multiplied by your percentage of disability, capped at the state maximum for your date of injury. For example, an AWW of $900 at 100 percent disability produces a $600 weekly check, provided that figure does not exceed the applicable cap. The formula is established by New York Workers’ Compensation Law §15.
What is the workers’ comp formula in New York?
The formula is: weekly benefit = AWW × 2/3 × percentage of disability. The state maximum weekly benefit acts as a ceiling and is updated each July 1; the cap from your date of injury applies for your entire claim. Getting your AWW established correctly is critical because every benefit payment is derived from that number.
How is my average weekly wage determined for workers’ comp?
The Workers’ Compensation Board divides your total gross earnings for the 52 weeks before your injury by 52. If you held more than one job when you were injured, wages from all employers are combined. Regular overtime and reportable tips count; sporadic or voluntary overtime generally does not.
What is the maximum weekly workers’ comp benefit in New York?
New York sets a new maximum weekly benefit each July 1, tied to the statewide average weekly wage. The cap in effect on your date of injury is the ceiling for your claim, and it stays fixed even as the state updates rates for newer injuries. The Workers’ Compensation Board publishes the schedule of maximums by injury year.
Does my workers’ comp rate change as I recover?
Yes. If you move from total to partial disability — for example, returning to light-duty work at a lower wage — your benefit drops to two-thirds of your wage loss rather than two-thirds of your full AWW. If your condition worsens, you can file to have your disability classification reviewed. Once the Board determines you have reached maximum medical improvement, your permanent rate and duration are established, though a reopening is possible if your condition later changes.