Workplace injuries, while unfortunate, are a reality of the working world. Workers’ compensation is a crucial safety net that provides financial assistance to injured employees and their families.
In Minnesota, workers’ compensation benefits are calculated based on well-defined factors.
Understanding how Minnesota workers’ compensation is calculated is essential for employers and employees to ensure fair and timely compensation.
Below, we explain how workers’ compensation benefits are calculated in Minnesota.
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Workers’ Compensation—Мinnesota Rates
Minnesota reviews and adjusts the rates for workers’ compensation benefits each year to ensure that injured workers receive fair compensation for their injuries while keeping costs manageable for employers.
- Statewide Average Weekly Wage (SAWW): The SAWW is the average weekly wage for all workers in Minnesota. It is used to calculate the maximum weekly benefit that an injured worker can receive. The SAWW for 2023 is $1,337, a 3.89% increase from the previous year.
- Maximum Weekly Benefit: The maximum weekly benefit is the most an injured worker can receive each week, regardless of their earnings. For 2023, the maximum weekly benefit is $1,363.74.
- Minimum Weekly Benefit: The minimum weekly benefit is the least an injured worker can receive each week. For 2023, the minimum weekly benefit is $272.75.
These rates are based on payroll and employment figures provided by the Department of Employment and Economic Development and the average cost of medical care.
Minnesota’s Formula for Calculating Workers’ Compensation Benefits
Minnesota has a straightforward formula for calculating workers’ compensation wage loss benefits:
Weekly Compensation = Average Weekly Wage x Two-Thirds
This means you’ll receive two-thirds of your average weekly wage before injury. Let’s break down the formula to understand it better.
Average Weekly Wage (AWW)
The average weekly wage (AWW) is the average amount you earned per week before your injury. To calculate your AWW, look at your earnings over the past 52 weeks.
If your earnings weren’t consistent throughout the year, focus on the 13 weeks before your injury.
The standard multiplier used in Minnesota’s workers’ compensation calculations is two-thirds of your AWW, which helps ensure you have enough money to cover your living expenses while recovering.
For example, let’s say you earned $500 per week before your injury. Your average weekly wage (AWW) would be $500. Two-thirds of your AWW would be $333.33, so your weekly workers’ compensation benefit would be $333.33.
Remember, this is a general overview of Minnesota’s standard workers’ compensation benefit rates. The specific details of your case may vary. You should talk to an attorney if you have questions about your workers’ compensation benefits.
Factors Influencing Minnesota Workers’ Comp Calculations
In Minnesota, several factors determine the compensation you receive. It’s important to know these factors to ensure you’re fairly compensated.
The Nature of Your Injury.
The compensation you receive for an injury depends on its severity and type. Generally, more severe injuries that result in permanent disability will receive higher compensation than less severe injuries.
For example, a broken arm that heals completely may qualify for less compensation than a back injury that causes chronic pain and limits your ability to work.
The Extent of Your Disability.
The extent of disability refers to how an injury limits your ability to perform your job duties. This assessment considers factors such as your physical limitations, any restrictions on your work activities, and your overall ability to earn a living.
Permanent partial disability (PPD) and permanent total disability (PTD) are two common types of disability that affect workers’ compensation calculations.
PPD refers to a partial loss of earning capacity due to an injury, while PTD means you’re entirely unable to work due to your injury.
Your Earnings Prior to Injury.
The higher your earnings before the injury, the higher your weekly compensation benefits will be. This is because the Average Weekly Wage (AWW) used in the calculation formula is directly proportional to your earnings.
For example, if you were earning $1,000 per week before your injury, your weekly compensation benefits would be around $667. However, if you were earning $500 per week, your weekly compensation benefits would be around $333.
Using Workers’ Compensation Calculators
Online workers’ compensation calculators can estimate the benefits an injured worker may be entitled to.
Using them is simple, just input the requested information, such as your earnings, the nature of your injury, and the extent of your disability, to provide a quick and convenient estimate of the amount of benefits you may be eligible for.
You can easily calculate your possible compensation by inputting the necessary information.
However, it is crucial to understand that workers’ comp calculators are not meant to substitute legal advice. These calculators provide rough estimates, but your actual benefits may vary depending on the details of your case.
Consult with an experienced workers’ compensation attorney for a thorough and precise assessment of your benefits.
Choose Arechigo & Stokka to Represent You in Workers’ Compensation Matters
If you’ve been injured on the job in Minnesota, you need an experienced workers’ compensation attorney on your side.
At Arechigo & Stokka, we understand the complexities of the workers’ compensation system and how to navigate it successfully on behalf of our clients.
With over a decade of experience representing injured workers in Minnesota, we have a proven track record of securing the maximum benefits our clients deserve.
Our St. Paul-based firm serves clients throughout Minnesota, ensuring you have access to legal expertise to protect your rights no matter where you live.
We approach each case with unwavering determination and dedication, fighting tirelessly to ensure our clients receive the full compensation they are entitled to.
We believe injured workers should not have to shoulder the financial burden of pursuing their rightful compensation. That’s why we operate on a contingency fee basis, meaning you don’t owe us anything unless we win your case.
This approach lets us focus on what matters most – getting you the justice and compensation you deserve.Contact us today for a free and confidential consultation.
Josh has been representing injured workers for over 10 years. Josh was born and raised in Fargo, North Dakota, and attended the University of Minnesota-Duluth where he earned a Bachelor of Arts Degree in Criminology. Mr. Stokka alson received his law degree from the Hamline University School of Law. During law school, Josh clerked at a Minnesota law firm specializing in personal injury and workers’ compensation. Prior to practicing in the area of workers’ compensation, Josh clerked for a judge in the 7th Judicial District in Minnesota. This valuable experience gave him insight into how judges think, do their jobs behind the scene, and how to frame a case in order to obtain a favorable result. Now, he focuses 100% of his practice on defending injured workers in Minnesota.