23-1041. Basis for computing compensation;
definition
A. Every employee of an employer within the provisions of this chapter who is
injured by accident arising out of and in the course of employment, or the employee's
dependents in the event of the employee's death, shall receive the compensation fixed in
this chapter on the basis of the employee's average monthly wage at the time of injury.
B. If the injured or killed employee has not been continuously employed for the
period of thirty days immediately preceding the injury or death, the average monthly wage
shall be such amount as, having regard to the previous wage of the injured employee or of
other employees of the same or most similar class working in the same or most similar
employment in the same or neighboring locality, reasonably represents the monthly earning
capacity of the injured employee in the employment in which the injured employee is
working at the time of the accident.
C. If the employee is working under a contract by which the employee is guaranteed
an amount per diem or per month, notwithstanding the contract price for such labor, the
employee or the employee's subordinates or employees working under the terms of such
contract or the employee's or their dependents in case of death shall be entitled to
receive compensation on the basis only of the guaranteed wage as set out in the contract
of employment, whether paid on a per diem or monthly basis, but in no event shall the
basis be less than the wages paid to employees for similar work not under contract.
D. Notwithstanding any other provision of this chapter, in computing the average
monthly wage there shall be excluded from such computation all wages or other
compensation for services in excess of:
1. One thousand three hundred twenty-five dollars per month for employees injured
before January 1, 1988.
2. One thousand six hundred fifty dollars per month for employees injured from and
after December 31, 1987 but before July 1, 1989.
3. One thousand eight hundred dollars per month for employees injured from and
after June 30, 1989 but before July 1, 1991.
4. Two thousand one hundred dollars per month for employees injured from and after
June 30, 1991 but before August 6, 1999.
5. Two thousand four hundred dollars per month for employees injured on or after
August 6, 1999 but before January 1, 2008.
6. Three thousand dollars per month for employees injured from and after December
31, 2007 but before January 1, 2009.
7. Three thousand six hundred dollars per month for employees injured from and
after December 31, 2008 but before January 1, 2010.
8. The amount adopted by the commission under subsection E for employees injured on
or after January 1, 2010.
E. for purposes of subsection D, paragraph 8, the commission, not later than August
1 of each calendar year, beginning August 1, 2009, shall adopt an amount that adjusts the
amount from the prior year to reflect the annual percentage increase in the Arizona mean
wage published by the department of economic security using the bureau of labor
statistics occupational employment statistics data coded for all occupations for the
prior calendar year. The amount adopted by the commission shall be effective for the
following calendar year and shall apply to all injuries occurring during that calendar
year. In adopting the amount under this subsection, the commission shall not decrease the
amount from the prior year or increase the amount more than five per cent from the prior
year.
F. Prior to a determination of the average monthly wage, compensation shall be paid
on a basis of a minimum monthly wage of two hundred dollars for employees eighteen years
of age or over.
G. For the purposes of this section, "monthly wage" means the average wage paid
during and over the month in which the employee is killed or injured.
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