Basic Earnings Law and Legal Definition

Basic earnings mean an employee's regular rate of pay earnings. It also includes commissions averaged over the lesser of (a) the 12 month period of employment just prior to the date disability begins or (b) the period of employment. Normal basic earnings shall mean monthly earnings in effect on July 1 of each year converted to an annual rate of earnings.[ Wallace v. American Petrofina, Inc., 668 F. Supp. 586, 588 (D. Tex. 1987)]