What Your Paycheck History Means for Your Montana Workers’ Comp Check
Key Takeaways: In Montana, your average weekly wage (AWW) is usually figured by averaging your actual gross earnings over the four pay periods right before your injury. If you worked for the employer for fewer than four pay periods, it’s generally your hourly rate times the weekly hours you were hired to work. If the last four pay periods don’t fairly reflect your work history with that employer, good cause can allow averaging over a longer period of up to one year. Wages generally include overtime at your regular rate, bonuses, commissions, reported tips, piecework, and meals or lodging that are part of your pay. Pay from other jobs you held at the same time can also count if the injury keeps you from doing them. Per diem, employer-paid insurance, retirement contributions, and leave you built up but weren’t paid out are generally left out. Temporary total disability benefits are generally 66 2/3% of your AWW, capped at the state’s average weekly wage. Other wage-loss benefits also use your AWW, each with its own formula and cap. Mistakes like leaving out overtime or a second job can shrink every check, so ask for the insurer’s wage calculation in writing and compare it to your pay records.
Your average weekly wage (AWW) sets almost every wage-loss check you get after a work injury in Montana. Under Montana law, the insurer usually averages your actual gross earnings over the four pay periods right before you got hurt. That figure can include overtime, bonuses, tips, and the value of employer-provided housing if it’s part of your pay. If the insurer leaves out pay that belongs in the number, your weekly benefit goes down with it.
If your check looks smaller than it should, you can have someone go over the math with you. Miller Tourtlotte Law works with injured Montanans across the state, in person in Billings or by phone and video call. Call 406-888-2222 or contact us now and we’ll look over your wage records with you.
Why Gross Pay, Not Take-Home Pay, Is the Starting Point
The math starts with what you earned before taxes and deductions, not what landed in your bank account. Under Montana’s wage definition statute, MCA § 39-71-123(1)(a)-(c), "wages" means all pay you receive for work done for your employer, including the cash value of pay that isn’t cash. That covers commissions, bonuses, overtime at your regular hourly rate, and holiday, vacation, and sick pay. It also includes backpay and tips you reported to your employer for tax purposes.
Pay that isn’t tied to hours generally counts too. MCA § 39-71-123(1)(d)-(g) includes piecework, incentive plans, and profit-sharing. Meals count at their actual value, and employer-provided lodging counts at a value set by administrative rule, as long as either one is part of your pay. Those rules matter for ag hands, oilfield crews in company housing, and piece-rate workers. For sole proprietors and partners who chose to be covered, draws, net profit, and money taken out of the business can count as wages, subject to specific statutory rules.
What Gets Left Out of the Number
Some pay doesn’t count, so know which items before you compare your records. Under MCA § 39-71-123(2)(a)-(e), the law leaves out:
- Expense payments or allowances for meals, lodging, travel, and living costs (per diem)
- Employer contributions to qualified retirement or pension plans
- Employer-paid health and life insurance
- Vacation or sick leave you built up but weren’t paid out
- Special rewards for an invention or discovery, and public assistance benefits
For many workers, the per diem rule hurts the most. If your pipeline or construction job paid a big daily allowance, that money generally won’t raise your AWW. Still, the line between a real expense allowance and wages paid under a different name isn’t always clear. Look at how it was reported and whether it actually paid for work costs.
| Usually Included in AWW | Usually Left Out of AWW |
|---|---|
| Hourly wages, salary, and overtime | Per diem and travel allowances |
| Bonuses and commissions | Employer-paid health insurance |
| Reported tips | Retirement plan contributions |
| Piecework and profit-sharing | Unpaid vacation or sick leave you built up |
| Meals at actual value; lodging at the rule-set value | Public assistance benefits |
The Average Weekly Wage Formula Montana Insurers Use
The basic rule averages your actual earnings over the four pay periods right before your injury. MCA § 39-71-123(3)(a) sets that as the default. If you’d worked for the employer for fewer than four pay periods, the wage is generally your hourly rate times the number of hours per week you were hired to work.
The "Good Cause" Exception for Uneven Earnings
Four pay periods don’t always show what you really earn, and the law allows for that. Under MCA § 39-71-123(3)(b), if those periods don’t fairly reflect your work history with the employer, the wage may be figured over a longer stretch, up to one year before the injury. Your total earnings for that period are divided by the number of weeks in it, counting slow weeks and seasonal swings. This look-back covers only your history with the same employer.
This exception can help or hurt you, depending on when you got hurt. A roofer hurt in a slow March might gain from a longer look-back that includes a busy summer. A seasonal worker hurt at the peak of the season might see the insurer push for a longer average that pulls the number down. Since the statute requires "good cause shown," the outcome depends on your facts and is often worth disputing.
💡 Pro Tip: Collect your pay stubs for the full year before your injury, not just the last four periods. If a longer window gives a fairer picture, you’ll want the records ready.
Workers With More Than One Job
If you held two jobs when you got hurt, both may count. Under MCA § 39-71-123(4)(a)-(c), benefits are generally based on your combined wages from every job the injury keeps you from doing. That only applies to "concurrent employment," meaning a job you actually held at the time of the injury and would have kept without a break. Wages from certain exempt work you chose not to cover don’t count.
How the Workers Comp Average Weekly Wage Turns Into a Benefit Check
Your weekly check is generally a set percentage of your AWW. Under Montana’s TTD benefit statute, MCA § 39-71-701(3), temporary total disability benefits are 66 2/3% of your wages at the time of injury. For example, a worker with a $900 AWW would generally get about $600 a week. TTD is only paid if the injury causes a total loss of wages, and it doesn’t start until after a short waiting period.
There’s a cap, and higher earners hit it. The weekly maximum is capped at the state’s average weekly wage at the time of injury, a figure the Montana Department of Labor and Industry updates every year. TTD generally lasts until you reach maximum medical healing or are released to return to work. If you were a well-paid operator or lineman, your check may replace well under two-thirds of your real income.
TTD isn’t the only benefit tied to this number. Temporary partial disability benefits depend on the gap between your AWW and what you earn after the injury. Permanent partial disability benefits also use your AWW, with a lower weekly cap. A mistake in your AWW can carry over into every type of benefit. For more on how each one works, see our guide to wage loss benefits Montana workers may be able to claim.
Limits That Can Cut or Stop TTD
Several rules can lower or end your TTD even when your AWW is right. Under MCA § 39-71-701(4), (5), and (7), you can lose TTD if your treating doctor releases you to the same job, a modified job, or another job with the same employer that you can do, at the same or higher pay, even before maximum healing. TTD is also reduced, but not below zero, by about half of any Social Security disability benefits paid because of the injury. You also generally can’t collect both wages and TTD without the insurer’s written consent.
Common Mistakes That Shrink Montana Injured Worker Pay
AWW mistakes happen more often than most people expect, and they rarely favor the worker. Problems we often see:
- Overtime or bonuses left out of the average
- A four-period window that lands on a slow stretch
- Lodging value or reported tips missing
- A second job ignored completely
- Allowances labeled per diem that may actually work like wages
Insurers don’t always explain how they got their number, and most people never think to ask. Losing even $50 a week adds up fast over a long recovery.
💡 Pro Tip: Ask the adjuster in writing for the wage statement and the calculation they used. Seeing which pay periods and kinds of pay they counted is the quickest way to spot a gap.
Getting Help From a Billings Workers Comp Attorney
A lawyer can redo the math from your payroll records and push back when the insurer leaves money out. Many large personal injury firms in Montana don’t take workers’ comp cases, but this is a core part of what we do. Talking with a Billings workers comp attorney early may help you catch problems before they affect months of checks.
Frequently Asked Questions
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Is my AWW based on my take-home pay?
No. Under MCA § 39-71-123, wages generally mean gross pay before taxes and deductions, plus certain non-cash pay such as meals and lodging that are part of your pay.
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Does overtime count in my Montana AWW calculation?
Generally, yes. Overtime counts at your regular hourly rate, not the time-and-a-half rate.
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What if I just started my job when I got hurt?
If you’d worked for the employer for fewer than four pay periods, your wage is generally your hourly rate times the weekly hours you were hired to work.
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Can a seasonal worker use a longer period?
Possibly. If good cause is shown, MCA § 39-71-123(3)(b) allows averaging your earnings with the same employer over up to one year, including slow periods.
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Does employer-paid health insurance raise my AWW?
Generally, no. MCA § 39-71-123(2) leaves out employer-paid health and life insurance premiums.
Your Paycheck History Is Worth a Second Look
Your AWW shapes every wage-loss check that follows, so it should be right from the start. Montana law generally counts gross pay, overtime, bonuses, tips, and certain non-cash pay, and leaves out per diem and fringe benefits. If you show good cause, it may allow a longer look-back when four pay periods don’t match your real work history.
You don’t have to sort through pay stubs and wage statements alone. Reach out to the team at Miller Tourtlotte Law, call 406-888-2222, or send us a message. We work with injured workers anywhere in Montana.
Disclaimer: This content is for informational purposes only and is not legal advice. Every case is unique, and results may vary. Consult an attorney about your specific circumstances.
