What is "average weekly wage" (AWW)?

The concept of "average weekly wage" (AWW) is crucial in the workers' compensation framework as it serves as a basis for calculating wage-loss benefits for injured workers. AWW typically encompasses the earnings of an employee over a defined period, which may include overtime, bonuses, and other forms of compensation, allowing for a comprehensive understanding of what the worker was earning prior to their injury.

When an injured worker files a claim for compensation, the AWW is utilized to ensure that the wage-loss benefits they receive are fair and reflective of their pre-injury earnings. This computation is designed to support the worker's financial stability during their recovery period.

Other choices do not accurately represent the legal and administrative understanding of AWW, which focuses specifically on its role in calculating benefits rather than merely highlighting extremes like the highest or lowest salary earned or the average salary of all employees in the organization. Thus, by selecting the option that centers on the calculation for wage-loss benefits, it aligns best with the purpose and functionality of AWW in the context of workers' compensation.