How are Lost Wages Calculated in a Personal Injury Claim?

July 26, 2024

in Personal Injury

Calculating lost wages in a personal injury claim involves a thorough assessment of both past and future lost earnings, including base salary, overtime, bonuses, and benefits. Accurate documentation and expert analysis are crucial to ensure fair compensation. Each case is unique, so it’s often beneficial to consult with a Seattle injury attorney to navigate the complexities of these calculations and maximize your claim.

Types of Lost Wages

Lost wages in a personal injury claim refer to the earnings you miss out on due to an injury caused by another party’s negligence. Calculating these lost wages is crucial to ensuring you receive fair compensation.

Immediate Lost Earnings

These are the wages you would have earned from the time of the injury until the settlement or trial. To calculate immediate lost earnings:

  • Hourly Employees: Multiply the number of hours missed due to the injury by your hourly wage.
  • Salaried Employees: To get a daily rate, divide your annual salary by the number of workdays in a year, then multiply by the number of days missed.

Example:

  • Hourly wage: $20/hour
  • Hours missed: 100 hours
  • Immediate lost earnings: $20 x 100 = $2,000

Lost Overtime and Bonuses

If you regularly work overtime or receive bonuses, the calculation should include these. You may need to provide proof of past overtime hours and bonuses, such as pay stubs or employer records.

Example:

  • Average overtime hours per week: 5 hours
  • Overtime rate: $30/hour
  • Weeks missed: 4 weeks
  • Lost overtime: 5 x $30 x 4 = $600

Loss of Benefits

Some benefits, such as employer contributions to retirement plans, health insurance, or stock options, might be lost during your time off work. These should also be factored in.

Example:

  • Monthly health insurance contribution: $300
  • Months missed: 2
  • Lost benefits: $300 x 2 = $600

Future Lost Earnings

If the injury causes long-term or permanent disability that affects your ability to earn in the future, future lost earnings must be calculated. This involves predicting the future impact of the injury on your earning capacity.

  • Permanent Disability: Calculate the difference between your pre-injury and post-injury earning capacity over your expected working life.
  • Temporary Disability: Estimate the duration you will be unable to work and multiply by your regular earnings.

Example:

  • Annual pre-injury earnings: $50,000
  • Annual post-injury earning capacity: $30,000
  • Expected remaining working years: 20 years
  • Future lost earnings: ($50,000 – $30,000) x 20 = $400,000

calculating lost wages in a personal injury claim

Self-Employed Individuals

For self-employed individuals, lost wages are calculated based on lost business opportunities, contracts, or income streams. Documentation such as past tax returns, profit and loss statements, and client invoices will be essential.

Example:

  • Average monthly earnings: $5,000
  • Months missed: 3
  • Lost earnings: $5,000 x 3 = $15,000

Additional Considerations

  • Documentation: Provide thorough documentation to support your claim, including medical records, employer statements, pay stubs, tax returns, and expert testimony if necessary.
  • Expert Testimony: Economists or vocational experts may be needed to calculate future lost earnings accurately, especially in cases of permanent disability.
  • Mitigation of Damages: You are generally expected to mitigate your damages by seeking alternative employment if possible.

Get the Compensation You Deserve with Brumley Law Firm

If you’ve suffered an injury due to someone else’s negligence, you shouldn’t have to bear the financial burden alone. Brumley Law Firm is dedicated to ensuring you receive the full compensation you’re entitled to, including lost wages. Our experienced attorneys are ready to help you navigate the complexities of your personal injury claim and secure the financial recovery you need to move forward.

Don’t let lost wages impact your future. Contact Brumley Law Firm today for a free consultation, and let us fight for the justice and compensation you deserve. Call us now at (833) 832-2727 or use our online form to schedule your free, no-obligation appointment.