What is "Wage Earning Capacity?"

Section 301 of the Workers' Disability Compensation Act defines “wage earning capacity” as the wages the employee earns or is capable of earning at a job reasonably available to that employee, whether or not wages are actually earned. In order to determine the wages you’ve earned at your present job, known as your Average Weekly Wage or AWW, the insurance carrier would look at the highest 39 of the last 52 weeks of your gross wages leading up to the date of injury/illness. The AWW is then determined by adding together those 39 weeks and dividing by 39. Generally, you should receive 80% of the after-tax value of your AWW as a weekly workers’ compensation benefit payment.