Erakovic v. Dept. of Labor and Industries

**What Happened** A worker named Erakovic was injured on the job while employed by Dependable Building Maintenance of Washington. When calculating how much workers' compensation he should receive for time lost from work, there was a dispute about what should count as "wages." Specifically, the question was whether employer payments for Social Security, Medicare, and other non-retirement benefits should be included when determining his wage replacement benefits. **What the Court Decided** The Washington Court of Appeals sided with the Department of Labor and Industries. The court ruled that when calculating workers' compensation payments for lost wages, employers' contributions to Social Security, Medicare, and similar non-retirement benefits should NOT be counted as part of the worker's wages. This meant Erakovic would receive lower compensation than he had hoped for. **Why This Matters for Workers** This ruling affects how much money injured workers in Washington receive through workers' compensation. When you're hurt on the job, your wage replacement will be calculated based on your actual take-home pay and certain benefits, but won't include what your employer pays toward Social Security and Medicare on your behalf. Workers should understand that these employer tax contributions don't boost their workers' compensation benefits.