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Are You Getting The Right Indemnity Rate In Florida? Common Calculation Errors That Could Cost You

  • By: Matthew Romanik, Esq.
Indemnity calculation form, money, and calculator: Avoiding errors in Florida.

If you’ve been injured on the job in Florida, one of the most important factors in your workers’ compensation claim is the indemnity rate or the amount you’re paid to make up for lost wages. But calculating that rate isn’t always straightforward. In this article, we break down…

  • How Florida’s workers’ comp indemnity rate calculation works.
  • What income should be included in your workers’ comp application.
  • Common errors to avoid that could result in underpayment.

What Is An Indemnity Benefit In Florida Workers’ Compensation Law?

In Florida Workers’ Compensation law, an indemnity benefit refers to the partial wage replacement paid to an injured worker who is unable to work due to a job-related injury. These payments help compensate for lost income during the time the worker is recovering and unable to earn their regular wages.

How Is My Average Weekly Wage Calculated In Florida Workers’ Compensation Cases?

Typically, Florida calculates an injured worker’s average weekly wage (AWW) by averaging your earnings over the 13 full weeks leading up to the date of your injury. However, this method doesn’t apply in every case. If you did not work during the entire 13-week period, perhaps because you were newly hired, alternative methods may be used. These can include the:

  • Contract rate of pay, if agreed upon in advance
  • Average wages of similarly situated employees

What Income Sources Are Included In A Florida Workers’ Compensation AWW Calculation?

The AWW calculation includes all forms of earnings, such as:

  • Base wages
  • Overtime
  • Fringe benefits like health insurance, employer contributions

If you lose access to fringe benefits after your injury, those lost benefits can be factored into the AWW, increasing the indemnity rate.

What Wage-Reporting Mistakes By Employers Commonly Reduce Florida Workers’ Compensation Benefits?

One of the most common issues arises in industries like construction, where employees are sometimes paid partially through official payroll and partially in off-the-books cash. This unreported income is difficult to verify and often gets excluded from the AWW calculation, unfairly reducing the employee’s benefits. If income isn’t documented properly, it may be impossible to include it in a benefits claim, even if the worker actually received it.

What Can An Attorney Do If My Indemnity Rate Is Being Underpaid?

If you’re an injured worker and you believe your indemnity rate has been calculated incorrectly or underpaid, an attorney can:

  • Communicate directly with the insurance carrier to resolve the issue informally
  • File a petition with the Judge of Compensation Claims to present evidence and argue for a proper recalculation based on accurate wage data

How Do Bonuses, Overtime, Or Having Multiple Jobs Complicate Indemnity Rate Calculations?

These sorts of factors can significantly complicate AWW calculations. If you held more than one job prior to your injury, and it prevents you from performing either job, your earnings from both positions should be considered. However, unrelated employers may be slow or unwilling to provide necessary payroll records.

On the topic of bonuses, one well-known case involved a retail manager who received an annual bonus that did not fall within the 13 weeks prior to injury. The employer went on to argue the bonus shouldn’t count at all. But the judge ruled the most fair and balanced approach was to pro-rate the bonus over 52 weeks so that a portion of it would be included in the average weekly wage, regardless of the exact timing of payment.

These types of disputes show how judges can exercise discretion to ensure a fair outcome, balancing both employer and employee interests.

Still Have Questions? Ready To Get Started?

For more information on the Florida indemnity rate calculation, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (386) 388-6260 today.

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