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Definition of State Average Weekly Wage

The state average weekly wage is an amount that is set by a state, which is based on the average weekly wages of workers in that state over a calendar year period that varies from state to state as to when it begins and ends. The state average weekly wage changes each year according to what the average weekly wages of workers in that state were the previous calendar year. While the average weekly wage varies from one worker to another, the state average weekly wage remains constant throughout the calendar year. The state average weekly wage varies from state to state according to what the average weekly wage of workers in a particular state is.

The state average weekly wage is important for a worker who files a workers' compensation claim for a work-related injury or illness. This is true because the amount that an injured worker receives cannot exceed the state average weekly wage no matter how much that worker's average weekly wage was. For example, in Texas, the Department of Insurance mandates that workers' compensation benefits in Texas cannot exceed 88 percent of the average weekly wage in covered employment. In New York, the maximum workers' compensation benefit that an injured worker can receive is two-thirds of the state average weekly wage.

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