In workers compensation, what is typically included in the definition of 'wages'?

In workers' compensation, the definition of 'wages' typically encompasses all forms of monetary compensation that an employee receives in exchange for their work. This includes not just the base salary but also overtime pay, bonuses, commissions, and any other financial benefits provided by the employer. The rationale for including all forms of monetary compensation is rooted in the principle that workers' compensation benefits should adequately reflect the total earnings that an employee would have received had they not been injured and unable to work.

This comprehensive approach ensures that benefits calculated for injured employees are fair and sufficient to support them during their recovery period. It helps create a more inclusive system that recognizes various forms of compensation rather than narrowing the definition to just one type, which could disadvantage employees who receive variable pay structures.