Current through September, 2024
Section 12-10-23 - Computation of average weekly wagesExcept as otherwise provided by section 386-51, HRS, an injured employee's average weekly wage shall be computed as follows:
(1) If the employee is employed on an hourly basis and has no overtime or other earnings during the one-year period prior to the work injury, the hourly rate shall be multiplied by the number of hours worked in a workweek;(2) If the employee is employed solely on the basis of a predetermined and fixed monthly salary and has no overtime or other earnings during the one-year period prior to the work injury, the monthly salary shall be multiplied by twelve and the product divided by fifty-two;(3) If an employee is employed solely on the basis of a predetermined and fixed semi-monthly salary and has no overtime or other earnings during the one-year period prior to the work injury, the semi-monthly salary shall be multiplied by twenty-four and the product divided by fifty-two;(4) If the employee is employed on the basis of: (A) A predetermined and fixed monthly, semi-monthly, or weekly salary and in addition receives other wages such as, but not limited to, commissions, gratuities (tips), bonuses, overtime pay, hourly or daily pay; or(B) Incentive earnings only (i.e. commissions, piecework pay); or(C) An hourly or daily rate and in addition receives other wages such as, but not limited to, commissions, gratuities (tips), bonuses or overtime pay; the employee's total earnings for the twelve months preceding the work injury shall be divided by fifty-two; provided that if the employee at the time of the injury was employed at higher wages than any other period of the preceding twelve months and had earned overtime pay during the twelve-month period, the average weekly overtime hours obtained by dividing the total overtime hours worked during the twelve-month period by fifty-two shall be multiplied by the overtime hourly rate based on the higher wages, and the product shall be added to the weekly straight time pay obtained by multiplying the straight time hourly rate based on the higher wages by the total number of straight time hours normally worked by the employee in a workweek.(5) If the employee is under twenty-five years of age and sustains a work injury causing permanent disability or death and: (A) If employed in an occupation or job classification as an apprentice or trainee under the terms of an apprenticeship or on-the-job training program, the average weekly wages shall be calculated on the basis of the rate of pay to be received at age twenty-five under the apprenticeship or trainee agreement, plan, or contract. An apprenticeship or on-the-job training program is one which is registered with the department, expressed in writing in a collective bargaining agreement or an employment contract, or one which the director determines bears substantial similarities to that of an on-the-job or career training program based on a mutual employer-employee understanding; or(B) Is employed in an occupation or job classification and is not an apprentice or trainee, the average weekly wage shall be determined on the basis of the median rate of pay of the lowest and highest rate of pay of twenty-five year old employees employed in a similar occupation in employment by the worker's employer. If there are no twenty-five year old employees in a similar occupation with the same employer, the median rate of pay shall be determined on the basis of twenty-five year old employees in a similar occupation in employment with another employer in this State.[Eff: 4/30/81] (Auth: HRS § 386-72) (Imp: HRS § 386-51)