Determining Lost Wages in a Personal Injury Claim

After being involved in a personal injury accident, you may be entitled to compensation for lost wages. Understanding how to determine these lost wages is crucial in ensuring you receive fair compensation for your injuries.

At Peake & Fowler, we pride ourselves on our commitment to our clients’ needs after a serious accident. Set up your consultation with our team now by giving us a call at 803-788-4370.

The Role of Lost Wages in Personal Injury Claims

When you’re hurt and unable to work because of a personal injury, the financial hit can be as painful as the injury itself. Lost wages are a big deal in personal injury claims because they account for the money you would have earned if you hadn’t been injured. Beyond your base wages, it also includes bonuses, extra money from overtime, and other perks like health insurance or retirement money that you might lose out on. If you lose out on income permanently due to a serious injury, a fair settlement should also account for that loss.

Basically, if it’s money or a benefit you would have gotten from your job but can’t because you’re injured, it counts as lost wages. This part of a claim is there to make sure you get back what you lost, so you can focus on getting better without stressing too much about the bills piling up.

What Qualifies as Lost Wages?

In personal injury claims, lost wages cover more than just the regular paycheck you miss while recovering. They include all the money and benefits you’re not getting because your injury keeps you away from work. This means any extra cash you would have earned, like bonuses or commissions, and even the value of perks such as health insurance or contributions to your retirement plan, are considered lost wages. 

If you’re someone who runs their own business, lost wages also refer to the profit you’re not making because your injury is keeping you from managing your operations as usual. Understanding what qualifies as lost wages is essential because it helps paint a complete picture of how your injury has impacted your financial situation.

How to Calculate Your Lost Wages

Figuring out your lost wages can seem tricky, but it is manageable. First, you need to know how much money you usually make. This could be your hourly wage or salary. Then, look at how much work time you’ve missed because of your injury. This includes both the full days you have missed and the shorter days you may have been forced to work due to your injuries.

In most cases, you can just multiply your hourly rate or salary by the number of hours or days you couldn’t work. For instance, if you earn $20 an hour and miss out on 40 hours of work, your lost wages would be $800. If you earn an annual salary, the calculation is a bit different, as you are not entitled to overtime, nor is your work technically tied to the hours you work.

For people who own businesses, it’s more complicated. You need to look at the profits you didn’t make while you were recovering. For example, if you are a contractor, you may have lost valuable contracts or had to delay projects that would have paid your company’s bills for months to come.

The Role of Documentation in Supporting Your Claim

Gathering and keeping detailed records is a key step in making sure you get the compensation you deserve for lost wages after a personal injury. This includes things like your work schedule to prove the days and hours you missed, pay stubs to show what you normally earn, tax returns that highlight your annual earnings, and any other papers that could help paint a clear picture of your financial losses. 

Having this kind of evidence builds a strong case to show how much you have lost financially—and when the insurance company questions you about it, you have solid proof to back it up.

Explore Your Legal Options with Peake & Fowler

With the right Columbia legal team by your side, you can feel confident about your personal injury claim. That’s where we step in to help. Get started now by calling Peake & Fowler at 803-788-4370 or filling out our online contact form.