Claims - AMW Statutory Maximum Information Page

Claims Division
Average Monthly Wage Statutory Maximum Information Page

Molly Jones, Claims Manager
Email: [email protected]
Phoenix: 800 W Washington St, Phoenix AZ 85007 - Phone: (602) 542-4661
Tucson: 2675 East Broadway, Tucson AZ 85716 - Phone: (520) 628-5181
FAX (use for either office): (602) 542-3373

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Compensation and death benefits are generally based on the employee's "average monthly wage" at the time of the industrial injury. The maximum average monthly wage has historically been a statutorily stated, specific amount. The Legislature would, from time to time, amend the statute to provide for an increased amount.

The Legislature amended the average monthly wage statute in 2007 to provide for an annual adjustment ("indexing") of the maximum average monthly wage that began with injuries occurring on or after January 1, 2010. See A.R.S. § 23-1041(E). The statute directs the Industrial Commission to adopt an amount that adjusts the maximum average monthly wage by the annual percentage increase in an index. The index originally specified in the statute was “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.” This index was used to adopt the maximum average monthly wage for calendar years 2010 to 2013. The Legislature amended the statute in 2012 and changed the index to, simply, the “Employment Cost Index.” The Employment Cost Index is composed of many different indexes. The Industrial Commission adopted a formal rule in 2013, A.A.C. R20-15-165, to identify the specific index within the Employment Cost Index to be used to adjust the maximum average monthly wage. The rule reads as follows: In using the Bureau of Labor Statistics Employment Cost Index to adopt the amount of an increase to the maximum average monthly wage under A.R.S. § 23-1041(E), the Commission shall use the Bureau of Labor Statistics, Employment Cost Index for Wages and Salaries, for Civilian Workers, by Occupational Group and Industry, All Workers, available at http://www.bls.gov. In essence, the maximum average monthly wage is increased each year by the same percentage increase in the Employment Cost Index for Wages and Salaries, for Civilian Workers, by Occupational Group and Industry, All Workers. The Commission is directed to adopt such an amount by August 1 of each year to be effective for the following calendar year. The Commission applied the new index to adopt the maximum average monthly wage for calendar year 2016.

The table below provides an archive of resolutions the Industrial Commission has adopted to establish the maximum average monthly wage under A.R.S. § 23-1041 as amended.

Archive of Commission Resolutions to Establish the AMW Statutory Maximum