How do we calculate reduced earnings benefits in New York?
We need to know only two quantities: What did the claimant earn (AWW) pre-injury? and What does the claimant now earn (post-injury)? The claimant is entitled to 2/3rds of the difference between those two numbers, subject to the statutory caps in effect at the time of loss.
Calculating reduced earnings:
- Pre-injury wage less post injury wage times 2/3rds = benefits due.
Or to put it another way,
- (Pre Injury Wage – Post Injury wage) * 2/3rds = benefit rate.
Example.
To use simple numbers: imagine a preinjury wage of $200 per week, and a return to work wage (part time) of $100 per week, with your doctor telling you there is a “mild” disability. We don’t care about the “mild” part – any disability that results in a reduction of earnings is compensated at the same rate (2/3rds).
In this case, the difference is $100 per week, multiplied by the reduced earnings benefit (2/3rds) for a final benefit of $66.66 per week.
