What Do You Think?
When determining disability benefits based on an employee’s average weekly wages, judges typically include salary, commissions, and bonuses. A recent Kentucky Supreme Court addresses whether an employee’s mileage reimbursement should be factored into the calculation.
The certified nursing assistant in that case injured her lower back while moving a patient in and out of the shower as part of her job treating patients in their homes. An ALJ awarded her permanent partial disability benefits. The ALJ calculated benefits based on the claimant’s average weekly wage of $422.
The claimant appealed the decision, arguing that the ALJ erred by not including her mileage reimbursement from the employer in calculating her wages.
In Kentucky, the term “wages” means, in addition to money payments for services rendered, the reasonable value of board, rent, housing, lodging, and fuel or similar advantage received from the employer.
Was mileage reimbursement part of the claimant’s weekly wages?
A. Yes. Kentucky courts view such payments as part of a claimant’s wages.
B. No. The mileage reimbursement didn’t amount to economic gain.
If you selected B, you agreed with the court in Harris v. Mercy Home Health, No. 2025-SC-0421-WC (Ky. 03/19/26), which affirmed the ALJ’s decision.
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The Kentucky Supreme Court pointed out that it interprets “wages” to exclude payments that are mere reimbursement of an employee’s expenses.
Wages can include not only wages and salary but any thing of value the employee receives in return for their work. This can include tips, bonuses, commissions and room and board, as they constitute real economic gain for the employee. A car allowance is includable as wage, but only if it exceeds actual travel expenses.
“Here, there was no evidence the mileage payments constituted a fixed amount, stipend, performance bonus, or anything other than reimbursements for [the claimant’s] actual accrued employment-related travel expenses incurred for driving to and from each patient’s residence,” the court said. Instead, the payments were based on the actual mileage required for her visits to patients. They did not provide her any extra economic gain. Thus, the ALJ properly excluded them from calculation of wages.
