Introduction

Lost wages represent a significant portion of car accident damages for many victims. When injuries prevent you from working, you're entitled to compensation for both the income you've already lost and the future earnings you may lose due to lasting impairment. Documenting and proving these losses requires specific evidence and, for serious injuries, expert analysis.

This comprehensive guide covers recovering past lost wages, calculating future lost earning capacity, required documentation, and maximizing your lost wage recovery.

Lost income can devastate your finances. We'll help you recover every dollar you're owed.

Past Lost Wages

Past lost wages compensate for income you've already lost due to your injuries. This includes time missed from work for medical appointments, recovery, and inability to perform job duties.

Calculation is typically straightforward for salaried and hourly employees: multiply your rate of pay by hours or days missed. Include regular wages, expected overtime, bonuses, and commissions.

Self-employed individuals calculate lost income based on business records, tax returns, and comparison to historical earnings. Keep detailed records of lost business opportunities and reduced income.

Used sick time and vacation days count as lost wages. You lost earned benefits that had monetary value, even if you received pay during absence.

Lost Earning Capacity

Lost earning capacity compensates for future income reductions caused by permanent injuries. This can be the largest component of damages for severe injuries.

Calculation requires projecting what you would have earned over your remaining work life absent the injury and comparing it to what you can now earn with your limitations.

Factors include your age, education, work history, career trajectory, and the specific limitations caused by your injuries. Younger victims with longer work-life expectancy have larger lost earning capacity claims.

Expert economists typically calculate lost earning capacity, projecting future earnings, applying discount rates, and determining present value of lifetime losses.

Documenting Lost Wages

Obtain a letter from your employer confirming your position, pay rate, time missed, and benefits lost. This documentation directly proves your wage losses.

Provide pay stubs showing your regular earnings before the accident. These establish your baseline income for calculating losses.

Tax returns for several years before the accident demonstrate your earning history, particularly important for self-employed individuals or those with variable income.

Medical records should document your inability to work and any work restrictions. Doctor notes directly linking missed work to accident injuries support your claim.

Vocational and Economic Experts

Vocational experts evaluate your work capabilities, the impact of your injuries on your ability to perform jobs, and alternative employment you may be able to pursue with your limitations.

Economic experts calculate the dollar value of lost earning capacity, including projections of career advancement, raises, and benefits you would have received.

For serious injuries affecting future work ability, expert testimony is essential to prove the full extent of your lost earning capacity.

These experts review medical records, employment history, education, and labor market data to provide detailed calculations of your lifetime losses.

Challenges to Lost Wage Claims

Insurance companies may argue you weren't really unable to work, your time off was excessive, or your injuries don't prevent working. Strong medical documentation counters these arguments.

For self-employed claimants, insurers scrutinize income claims more heavily. Detailed business records and tax returns proving your pre-accident earnings are essential.

Pre-existing conditions that limited your work ability before the accident may reduce your claim. However, you're entitled to compensation for accident-caused aggravation.

Insurance companies often undervalue lost earning capacity because it requires accepting that permanent limitations exist. Expert testimony overcomes this skepticism.

Frequently Asked Questions

How do I prove lost wages?
Employer letter verifying missed work and lost income, pay stubs showing regular earnings, tax returns for self-employed, medical records showing treatment preventing work, and calculation of hourly rate × hours missed or salary ÷ work days × days missed.
Can I recover lost wages if I used sick time?
Yes. Using sick time, vacation, or PTO for accident treatment is lost wages. You lost those benefits due to the accident. Document time used and normal pay rate.
What if I'm self-employed?
Use tax returns and profit/loss statements to show income loss. Document projects postponed, clients lost, and business impacts. May need expert to calculate loss as self-employed income fluctuates.
Can I recover future lost earnings?
Yes, if permanent impairment prevents returning to former work or reduces earning capacity. Vocational expert evaluates reduced capacity, economist calculates present value of lifetime earnings loss. Can be largest damage component.
What if I was unemployed at time of accident?
Can still recover if injuries prevent you from seeking/obtaining work you would have. Show recent employment history, active job search, education/training interrupted, or reduced future earning capacity.
Are lost benefits compensable?
Yes. Lost health insurance, retirement contributions, stock options, bonuses, and other benefits are part of lost compensation. Document all employment benefits lost.

Conclusion and Next Steps

Lost wages and earning capacity can represent substantial damages, especially for serious injuries. Thorough documentation and expert analysis ensure you recover the full value of your lost income.

The most important steps you can take right now are: get written confirmation from your employer of time missed and pay lost, keep records of all work-related impacts, obtain medical documentation of work restrictions, and retain experts for serious injuries affecting future earning ability.

If your car accident injuries have affected your ability to work, contact a qualified attorney for a free consultation. An experienced attorney can document lost wages and work with experts to calculate and prove lost earning capacity.