Texas Workers’ Compensation Average Weekly Wage Calculation

Average weekly wage (AWW) is the wage figure used to calculate several Texas workers’ compensation income benefits. It represents a preinjury earning baseline, not necessarily the employee’s current paycheck or hourly rate multiplied by a standard week. Texas rules use different methods depending on whether the employee is full time, part time, seasonal, newly hired, paid on a school-year contract, or working for multiple employers. The benefit type can also affect which AWW is used.

TDI describes AWW for a typical full-time employee as the average amount paid each week in the 13 weeks before the injury or illness. The AWW can include more than cash wages. Overtime, special pay, and certain non-pecuniary benefits may matter. The correct method must follow the Texas Labor Code and Division of Workers’ Compensation (DWC) rules for the specific employment pattern and claim.

Why AWW matters

AWW is an input to the weekly benefit calculation. Temporary income benefits (TIBs) generally replace a portion of the difference between preinjury AWW and postinjury earnings when a compensable injury causes wage loss. Other income-benefit types use statutory formulas and maximum or minimum amounts that may reference AWW or the State Average Weekly Wage. The benefit formula is separate from the question of whether the employee qualifies for a particular benefit.

AWW can affect a claim even if the injury and eligibility are not disputed. If the employer’s payroll records omit overtime or include a benefit that should be counted, the wage baseline may be wrong. If the employee had variable hours or worked for more than one employer, a flat salary figure may not capture the full statutory calculation. Accurate wage evidence helps the carrier, employee, employer, and DWC resolve the amount correctly.

Full-time employees: the 13-week method

For a full-time employee, the basic method adds the wages paid during the 13 weeks immediately before the date of injury and divides by 13. Under DWC rules, full time generally means regularly working at least 30 hours per week on a schedule comparable to other full-time employees at the company, in the same business, or in the vicinity. The classification depends on the schedule and work pattern, not simply the employee’s job title.

Example: if a full-time employee’s included wages for the 13-week period total $15,600, the basic AWW is $15,600 divided by 13, or $1,200 per week. If the employee also received included non-pecuniary benefits, the value of those benefits may need to be added before dividing. The example shows the arithmetic only; wage inclusion, dates, benefit caps, and the correct employee category must still be determined under the rules.

The relevant 13 weeks are the weeks immediately before the injury, not any convenient quarter selected by the employer. Payroll should be matched to the correct period and payment basis. If the injury is an occupational disease with a different date-of-injury rule, the relevant wage period may require careful legal and factual analysis. Use the date applicable under the claim, not simply the date the employee first noticed symptoms.

Less than 13 weeks with the employer

If the employee has not worked for the employer for 13 weeks before the injury, the calculation may use wages paid to a similar employee performing similar services who earned wages during the prior 13 weeks. This substitute method is designed to estimate the injured employee’s normal earning capacity from comparable work rather than treating a short employment history as a full wage record.

The comparison should be genuinely similar. Consider the services performed, schedule, skill, location, full-time or part-time status, and pay arrangement. A different worker who performs unrelated duties or has a materially different schedule may not provide a sound comparison. Keep the comparator’s payroll evidence and job information so the calculation can be explained and reviewed.

If no similar employee is available, DWC rules provide other methods depending on the circumstances. Do not invent a 13-week history or substitute a job offer that does not reflect the actual work. The carrier should identify the governing rule and document why the selected method applies. If the employee or employer disagrees, the wage dispute can be addressed through DWC’s dispute-resolution process.

Part-time, seasonal, and irregular schedules

A part-time employee’s earnings may be averaged using the actual schedule and the applicable regulatory method. The employee’s schedule should be compared with similarly situated part-time workers. A worker scheduled for two shifts each week should not automatically be treated as a full-time employee just because the hourly rate is high. Conversely, a variable schedule does not mean the employee had no normal earning pattern.

Seasonal work needs special handling because a short peak period may not represent annual earning capacity. Texas law and rules address seasonal or cyclical work and allow a relevant AWW adjustment in specific circumstances. DWC provides a form to request adjustment of AWW for a seasonal worker. The employer and employee should preserve records covering the season, the usual cycle, earnings in comparable periods, and any seasonal work history that supports the calculation.

Irregular work, commissions, piece-rate pay, or frequent schedule changes require more than multiplying an hourly rate by 40. Review payroll for the full relevant period, payment records, schedules, commission statements, tips or special compensation where applicable, and periods with no work. The statutory method governs; an employer’s preferred payroll convention cannot replace the DWC calculation rule.

What counts as wages

Pecuniary wages are money payments such as salary, hourly wages, commissions, and bonuses. Non-pecuniary wages are benefits paid in a non-cash form, such as health-insurance premiums, housing or vehicle allowances, clothing, or other items with measurable value. TDI explains that these benefits may be included in AWW. The key question is whether the payment or benefit fits the statutory and regulatory wage definition and how it is valued.

A payroll review should not treat every expense reimbursement as wages. A mileage reimbursement supported by business travel records may differ from a flat car allowance; employer-paid health benefits differ from an employee’s personal expense; and a one-time discretionary payment may be treated differently from recurring compensation. Keep the plan documents, payroll codes, receipts, and benefit values that explain each item rather than relying only on a year-end tax form.

Multiple employment

An employee may have more than one job when injured. Texas rules can require wages from multiple employment to be considered for an AWW used for income benefits, subject to the specific statutory requirements. The claim employer is the employer the employee worked for at the time of injury and through which the claim is filed; a non-claim employer is another employer the employee worked for at the time. The worker may need to provide a Multiple Employment Wage Statement to the carrier.

Multiple-employment wages can change the AWW calculation, but the second job’s wage records are not simply added without documentation or eligibility review. The dates, concurrent employment, type of benefit, and applicable statutory provisions matter. The employee should report other jobs, and employers should avoid assuming that income from another employer is irrelevant. DWC’s Appeals Panel wage materials explain how multiple employment is evaluated and which evidence may be needed.

Example: an employee works regular weekday shifts for the claim employer and also has a weekend job. If the statutory multiple-employment rules apply, the employee’s earnings from both employers may be used for the relevant benefit calculation. Payroll evidence should establish the concurrent work and amounts. If the weekend job began after the injury, it is not preinjury multiple-employment wage evidence, though postinjury earnings could matter in determining wage loss for TIBs.

School district employees

School district employees can have a special wage calculation because their contract may cover a school year shorter than 12 months while pay is distributed across a longer period. TDI explains that AWW for TIBs and AWW for benefits other than TIBs can be calculated differently for school district employees. For certain benefits other than TIBs, total wages earned in the prior 12 months are divided by 50; for TIBs, contract wages may be converted to an average weekly amount based on months or days worked.

For example, a school employee with an annual $45,000 contract based on nine months of work may have a TIB AWW calculated by converting the monthly contract amount to a weekly amount. For other income or death benefits, TDI’s example divides annual contract wages by 50, producing a different AWW. These are illustrations of the statutory distinction, not a universal formula for every education employee. Check the contract terms, type of benefit, and current DWC guidance.

AWW for TIBs versus later benefits

A key exam point is that the AWW used for TIBs may differ from the AWW used for other income benefits. TIBs compare the employee’s preinjury earning baseline with postinjury wages to determine whether injury-related disability caused a wage loss. Some other benefits use different statutory rates or a different wage measure. The TDI benefit page gives separate examples for school district employees, demonstrating why ‘AWW’ should not be assumed to be one unchanged figure throughout a claim.

Weekly benefit payments are also subject to maximum and minimum amounts that DWC updates by benefit year. The State Average Weekly Wage (SAWW) and injury-date rules affect caps and floors. AWW is the employee-specific wage figure; SAWW is a statewide measure used in setting statutory maximum and minimum benefits. Do not confuse them or use a fixed dollar cap without identifying the applicable date range.

How to document and dispute AWW

Useful records include pay stubs, payroll registers, timecards, schedules, contracts, commission statements, bonus plans, benefit invoices, work assignments, wage statements from other employers, and seasonal work records. Employers should preserve the information for the 13 weeks before injury and, where applicable, the prior 12 months. Employees should review the benefit notice and compare the stated AWW with their own earnings evidence.

If the AWW appears incorrect, identify the specific input or rule in dispute: the period used, the employee’s full-time or part-time category, wage inclusion, non-cash benefits, comparator employee, multiple-employer earnings, seasonal status, or school-contract method. Submit supporting documentation to the carrier and follow DWC dispute procedures. A generalized statement that ‘the check is too low’ is less useful than a clear calculation and records supporting it.

AWW can be adjusted when the facts and law permit, including under provisions for seasonal workers or other changed circumstances. A change should be based on the applicable rule and evidence, not simply on a later raise or preference. Use current DWC instructions and forms because rule amendments or annual benefit tables can change the process or amounts.

Common AWW mistakes

• Dividing by 12 or 52 instead of using the method required for the employee’s work pattern.
• Assuming all employees use the same 13-week calculation.
• Excluding overtime, commissions, or non-cash benefits without checking the wage definition.
• Treating every allowance or reimbursement as wages without examining its purpose and evidence.
• Ignoring a similar employee’s wages when the injured worker lacks 13 weeks of history.
• Using a school district’s TIB wage measure for IIBs, SIBs, or death benefits without checking the separate rule.
• Confusing employee-specific AWW with the State Average Weekly Wage.
• Applying old maximum or minimum weekly benefit amounts to a different benefit year.
• Assuming wages from another job are automatically excluded or automatically added without the multiple-employment test.

Exam takeaway

Texas AWW is a preinjury wage baseline, but its calculation depends on the employee’s schedule, history, wages, other jobs, seasonal pattern, and sometimes the benefit type. The full-time method generally uses 13 weeks of wages divided by 13; a similar employee may provide the comparison when there is less than 13 weeks of work. Include eligible pecuniary and non-pecuniary wages, follow special rules, and distinguish AWW from SAWW and annual benefit caps.

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