When you’re injured due to someone else’s negligence, you may be entitled to compensation for your injuries, including lost wages. These are the earnings you missed out on because your injuries prevented you from working.
Compensation for lost wages is a critical part of many personal injury claims, but calculating these damages requires specific steps. Here’s how lost wages are typically calculated.
What Are Lost Wages?
Lost wages refer to the money you would have earned at work if you hadn’t been injured, including:
- Hourly wages or salary
- Tips or bonuses
- Overtime pay
- Commissions
- Vacation or sick days used due to the injury
Missed wages apply to time missed during recovery, doctor’s appointments, hospital stays, and rehabilitation.
If the injury caused long-term or permanent disability, additional compensation may also be available for any loss of earning capacity you experienced. This often requires expert analysis and may involve economic projections.
How to Calculate Lost Wages for Employees
For individuals who have typical employment, lost wages are typically calculated using the following formula:
Lost Wages = Daily Earnings × Number of Workdays Missed
For example, if you earn $200 per day and miss 20 workdays due to your injuries, your lost wages total $4,000.
If you’re a salaried employee, your daily earnings can be calculated by dividing your annual salary by the number of workdays in a year (usually 260).
Example: A worker earning $65,000 annually would make roughly $250 per workday. Missing 10 days would result in $2,500 in lost wages.
Your compensation award may also need to account for:
- Missed overtime opportunities
- Bonuses or commissions you were on track to earn
- Pay increases or promotions that were postponed or canceled due to the injury
However, documenting these additional losses may require documentation from your employer or past pay records.
Calculating Lost Wages in a Personal Injury Claim
What If You’re Self-Employed?
Calculating lost income for self-employed individuals can be more complex. Instead of wages, you may need to show.
- Canceled contracts or appointments
- Historical income (tax returns, 1099s)
- Business records showing average earnings
- Expert testimony or accounting reports
Courts and insurance companies often require more extensive documentation to validate lost income claims for freelancers, contractors, and business owners.
Proving Lost Wages
To recover lost wages, you’ll need clear and credible documentation establishing your typical income. This often includes:
- Pay stubs from before and after the injury
- Employer letter verifying missed time and hourly rate/salary
- Tax returns or W-2s showing annual income
- Doctor’s notes or medical records confirming your inability to work
For self-employed individuals, profit-and-loss statements, canceled client meetings, and business correspondence can all be useful.
Your Centennial injury attorney may work with economists or vocational experts if your injury impacts your long-term ability to earn income.
Contact an Experienced Colorado Personal Injury Lawyer for Help Recovering Lost Wages
Lost wages can make up a significant portion of a personal injury claim, especially if you’re out of work for an extended period. Whether you’re employed or self-employed, the key to a successful lost wage claim is income records and documentation.
If you’ve suffered an injury and missed time from work, contact Legal Help in Colorado for a free consultation. Our Colorado personal injury attorneys can help you gather evidence, calculate your losses, and pursue the full compensation you deserve.