Section 8 AAC 45.220 - Gross weekly earnings(a) After calculating the gross weekly earnings less the payroll tax deductions under AS 23.30.220, the result will be rounded to the nearest dollar.(b) The calculation of an employee's gross weekly earnings set out in (c) of this section applies to each of the following periodic payments: (1) "weekly amount" under AS 23.30.220(a)(1);(2) "monthly earnings" under AS 23.30.220(a)(2);(3) "yearly earnings" under AS 23.30.220(a)(3);(4) "earnings" under AS 23.30.220(a)(4)(A);(5) "amount that the employee would have earned" under AS 23.30.220(a)(4)(B);(6) "usual wage" under AS 23.30.220(a)(5);(7) "total wages" under AS 23.30.220(a)(6); or(8) "earnings" under AS 23.30.220(a)(7).(c) In calculating an employee's gross weekly earnings, each of the terms set out in (b) of this section means periodic payments made by an employer to an employee for employment before any authorized or lawfully required deduction or withholding of money by the employer; for purposes of this subsection,(1) compensation that is deferred at the option of the employee is a periodic payment;(2) the value of room and board is a periodic payment if taxable to the employee, but the value of room and board that would raise an employee's gross weekly earnings above the state's average weekly wage at the time of injury may not be considered a periodic payment;(3) the terms set out in (b) of this section do not include as periodic payments: (A) irregular bonuses, reimbursement of expenses, and expense allowances;(B) a benefit or payment to the employee that is not fully taxable to the employee during the pay period, except that the amount an employer contributed to provide health or life insurance coverage for the employee or employee's beneficiaries must be included as a periodic payment.(d) For purposes of calculating the gross weekly earnings under AS 23.30.220 and (c) of this section for an injury that occurred before July 1, 2000,(1) "overtime" pay means only the rate of pay for hours worked in excess of 40 hours per week and eight hours a day if that rate of pay is different than the regular rate of pay for the hours the employee worked that were not in excess of 40 hours a week or eight hours a day; the hours worked in excess of 40 hours in a week or eight hours a day are included in the gross weekly earnings, but at the regular rate of pay; and(2) "premium" pay means only the hourly rate of pay for working a holiday, a graveyard shift, or other shift differential, if that rate of pay is different than the regular rate of pay for the employee's usual work week.EXAMPLE
1. An employee works 48 hours in a week and does not receive contributions that would be added under this section. The employee's regular rate of pay for the first 40 hours is $10 an hour or $400 ($10 x 40 = $400); the rate of pay for the excess 8 hours is $15 an hour or $120 ($15 x 8 = $120). The actual weekly total earnings are $520 ($400 + $120). For purposes of computing the gross weekly earnings, the employee's weekly earnings would be $480 (48 hours times $10 an hour).2. An employee is paid $8 per hour and there are no contributions that would be added under this section. The employee never worked more than 8 hours per day or 40 hours per week. The earnings period used to compute the gross weekly earnings included New Year's Day. Because the employee worked New Year's Day, a holiday, the employee was paid "premium pay" of an additional $2 per hour, or $10 per hour. In computing the gross weekly earnings, the weekly earnings for that week are $320 (40 hours at $8 per hour), and not the actual weekly earnings of $336 (32 hours at $8 per hour and 8 hours at $10 per hour).Eff. 12/14/86, Register 100; am 7/2/98, Register 146; am 2/3/2001, Register 157Authority:AS 23.30.005
AS 23.30.220