top of page
Articles Library
Writer's pictureBarb Ferrigno

How to Calculate Lost Wages After a Personal Injury Accident



Understanding how to calculate lost wages after a personal injury accident is crucial. It's not just about recovering physically but also financially. Lost wages refer to the earnings you miss out on due to injury. It includes your regular pay and can extend to bonuses and overtime. I often hear about the Grimes personal injury lawyer who advises clients on these calculations. The process involves assessing your pay prior to the injury, the time you missed work, and any potential future earnings affected. Having a clear calculation can support any claims you make for compensation. It’s also essential to keep detailed records of all work missed and any correspondence with your employer. This documentation can make a significant difference in the outcome of your case. By understanding and following these steps, you can better navigate the financial impact of your accident.


Gather Essential Documents

The first step is to gather all relevant documents. This includes pay stubs, tax returns, and any other proof of income. These documents help establish your average earnings before the accident. Keeping track of your work schedule and any employer communications about missed workdays is also important. The U.S. Department of Labor provides helpful guidelines on maintaining employment records.


Calculate Regular Earnings

Next, calculate your regular earnings. Look at your hourly wage or salary. Include any consistent overtime, bonuses, or commissions. The goal is to determine an accurate representation of your typical income. Use the following basic formula to get started:

Type of Income

Calculation Method

Hourly Wage

Hourly rate x Hours missed

Salary

Annual salary / 52 weeks x Weeks missed

Overtime

Average weekly overtime hours x Overtime rate x Weeks missed

Consider Additional Income Sources

Don't forget to consider additional income sources. This includes bonuses, which can be part of your earnings. If bonuses are regular and predictable, include them in your calculations. You should also account for missed commissions if you work in sales. Documenting these accurately can strengthen your compensation claim.


Account for Benefits and Other Compensation

Calculate any benefits you may have lost during your recovery. Employer-paid health insurance, retirement contributions, and other perks can factor into your total lost compensation. These benefits represent real financial value, and missing out on them can impact your financial stability. Make sure to include these in your overall calculation.


Document Future Lost Earnings

Sometimes, injuries lead to long-term work restrictions or require a career change. Estimating future lost earnings can be trickier. Consider consulting with a financial expert or vocational counselor. They can help predict potential future earnings lost due to your injury. This aspect is crucial for ensuring long-term financial security.


Consult Professionals for Assistance

While you can start these calculations on your own, consulting a professional can be beneficial. A personal injury lawyer, like those mentioned earlier, can guide you through the legal complexities. They ensure all potential areas of lost income are covered. This professional help can be crucial in maximizing your compensation.


Maintain Clear Records

Throughout the process, maintaining clear records is key. Document every detail related to your injury and lost wages. This includes medical records, communications with your employer, and any work-related documents. Clear records support your claims and can make a significant difference in legal proceedings.

Conclusion

Calculating lost wages after a personal injury isn't just about recovering your regular paycheck. It's about ensuring all aspects of your compensation are accounted for. By gathering documents, calculating all forms of income, and consulting professionals, you can protect your financial future. For more detailed guidance, consult resources like the U.S. Department of Labor.


7 views0 comments

Recent Posts

See All

Comments


If you enjoyed this article, receive free email updates!

Thanks for subscribing!

Join 20,000 subscribers who receive our newsletter with
resources, events and articles

Thanks for subscribing!

bottom of page