How Lost Wages Are Calculated in a Personal Injury Claim
If you have been injured in a car accident or any other incident in Florida and had to miss work, you may be entitled to recover lost income through a personal injury claim. Lost wages can make up a significant part of the financial compensation you receive after an injury. To ensure you’re fully reimbursed, you need to understand how lost wages are calculated and how to prove the amount you’re owed to insurance companies or in court.
What Are Lost Wages?
Lost wages form part of economic damages you may recover in a personal injury claim and include more than just your regular salary or hourly pay. They also cover any income you miss because of your injury. This can include:
- Hourly wages or fixed salary
- Overtime pay
- Tips and commissions
- Bonuses or seasonal pay
- Freelance work, gig work, or self-employment income
In more serious cases, you may also claim lost earning capacity if your injury leads to long-term or permanent reductions in your ability to earn income.
How To Calculate Lost Wages
To start, determine the number of workdays you missed. Then multiply that by your average daily earnings. If you are paid by the hour, calculate your daily earnings, then multiply that by the number of work hours you missed. For salaried employees, divide your annual salary by the number of working days in the year. For example, if you earn $60,000 per year and work 260 days, your daily average is around $230. If you missed work for 10 days, that would equal $2300 in lost wages.
Lost Overtime and Bonuses
If you regularly work overtime, you should also include those hours. Ensure to keep a record of prior overtime and bonus amounts, as this will form part of your evidence to the insurance companies or court. Additionally, don’t forget to include commissions for the missed work period.
Future Lost Earnings
If your injury affects your ability to earn in the future, you may be entitled to future lost earnings. This requires estimating the impact on your long-term earning potential. For permanent disability, estimate the difference between pre- and post-injury earnings over your expected work life. If your disability is temporary, multiply your regular earnings by the time you cannot work.
For example, if your pre-injury earnings are $50,000/year, post-injury capacity is $30,000/year, and your expected remaining work years are 20 years remaining, your future lost earnings will be ($50,000 – $30,000) × 20 = $400,000.
If you are self-employed or an irregular income earner, you may need tax returns, invoices, and profit-and-loss statements to substantiate your lost wages claim.
Proving Lost Wages
To prove lost wages, you may need the following:
- Job title and hire date
- Hours typically worked
- Pay rate and overtime
- Days or hours missed
- Bonuses or perks
- Pay stubs
- Bank Statements
- Tax returns
- Business records for self-employed workers
Contact Us for Legal Help
If you need help calculating lost wages or gathering proper documentation for your personal injury claim, our Tampa personal injury lawyer at The Pendas Law Firm can help. Contact us today to schedule a consultation.
The Pendas Law Firm also represents clients in the Jacksonville, Orlando, Fort Myers, West Palm Beach, Fort Lauderdale, Bradenton, Daytona Beach, Tampa, Miami, Naples, Ocala, and Melbourne areas.