### Ogilvie Calculations Made Dead Simple

**UPDATE: DOWNLOAD THE MATHEMATICAL PROOF AS A PDF!**

Get ready to stop paying people to do Ogilvie calculations, recycle your Gearheart/Gerlach handouts, and delete your Frost Excel spreadsheet.[1] We’re about to go all “Beautiful Mind.”

Yesterday while at the Oakland WCAB an Applicant’s attorney mentioned he noticed an interesting trend in the Ogilvie formula. [2][3] He said that whenever he does an Ogilvie calculation for someone with a 100% earnings loss and a modest WPI, the WPI is always increased by 18. [4]

I ran a number of test calculations on this theory and it *appeared* to be right. My calculations show that up to a WPI of 44 the increase *appears* to always be 18.1, but the last “0.1” always gets rounded down. However, *appearing* to be right just isn’t good enough for me. And, because I am just truly that nerd, here’s the fully mathematical proof:

Let’s break down the calculations at the heart of Ogilvie:

- Earnings Loss[5][6]
- = (PIESSE – PIEA) / PIESSE
- = ($1.00 – $0.00) / $1.00
- = $1.00 / $1.00
- = 1
- = 100%

- Individualized Proportional Earnings Loss
- = (WPI / Earnings Loss) / 100
- = (WPI / 100% )/100
- = (WPI / 1) / 100
- = WPI / 100
- Thus, for any WPI less than 45 and a total loss of earnings, the Individualized Earnings Loss will always be less than 0.450 in Table A.

- DFEC Adjustment Factor
- = ([1.81/a] * .1) + 1
- = ( (1.81 * .1)/a) + 1
- = (.181/a) + 1
- = 1 + (.181/a)

- Ogilvie DFEC Adjusted Rating
- = WPI * DFEC Adjustment Factor
- = WPI * (1 + (.181/a) )
- = WPI * (1 + (.181 / Individualized Proportional Earnings Loss) )
- = WPI * (1 + (.181 / (WPI / 100) ) )
- = WPI * (1 + (.181 * 100 / WPI ) )
- = WPI * (1 + (18.1/ WPI ) )
- = WPI * ( (WPI/WPI) + (18.1/ WPI ) )
- = WPI * (WPI + 18.1/ WPI )
- = WPI * (WPI + 18.1/ WPI )
- = WPI + 18.1

- Conclusion
- If you have an Applicant with a 100% post injury earnings loss and a WPI of 44 or less, you should rebut the FEC and arrive at an adjusted WPI that is equal to the original WPI plus 18.1.

Therefore, I propose a new Ogilvie formula that will be easy for anyone to remember:

**Step 1:**If the injured worker has a 100% earnings loss and a WPI of 44 or less, add 18.1 to the WPI and round down.**Step 2:**If the injured worker has less than 100% earnings loss or a WPI of 45 or higher, go to Step 3.**Step 3:**For*heaven’s sake*, just make your life easier and use the calculators here at PDRater.com.

What do you think? Leave a comment or drop me a line.

- Sorry Jeff, Mark, Mark, and Ray! [↩]
- Thank you “S”! Unfortunately, he did not want to be named. [↩]
- Man, I *wish* I could take credit for this observation. [↩]
- Not multiplied by 18, but an addition of 18. [↩]
- PIESSE = Post Injury Earnings of Similarly Situated Employees [↩]
- PIEA = Post Injury Earnings of Applicant [↩]

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