The maximum wage considered under a workers' compensation policy is capped by statutory state or federal limits known as the State Average Weekly Wage (SAWW) multiplier. Most jurisdictions restrict temporary and permanent disability benefit calculations so that high-earning employees cannot receive unlimited wage replacement. Instead, benefits are capped at a specific percentage (such as 100% or 150%) of the state's average weekly wage, meaning high earners will experience a capped payout rather than full replacement of their actual salary.
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