When you’re injured in an accident, the financial impact extends beyond medical bills and immediate expenses. Many people also experience a significant loss of income due to their inability to work while they recover. In personal injury claims, lost wages and loss of earning potential are two critical elements that can greatly affect the compensation you are entitled to. Many firms, like ours, and like our peers from Marsh | Rickard | Bryan, LLC, consult with economic and vocational experts to determine a value on loss of earning potential and lost wages.
What Are Lost Wages?
Lost wages refer to the income you are unable to earn due to your injuries. If you miss work because of an accident, you are entitled to be compensated for the wages you would have earned during your recovery period. This is one of the most straightforward damages to calculate, as it involves determining how much you would have earned had the accident not occurred.
To calculate lost wages, your personal injury lawyer and the insurance company typically consider:
- Your regular income: This includes your hourly wage or salary before the accident. If you are a salaried employee, your daily or weekly earnings are based on your annual salary. If you’re an hourly worker, your wages are calculated based on the hours you missed from work.
- Duration of lost work: The length of time you missed work due to your injuries will be taken into account. This could be days, weeks, or even months, depending on the severity of your injury and the recovery time required.
- Overtime or bonuses: If you regularly worked overtime or received performance bonuses, these are also considered as part of your lost wages.
What Os Loss Of Earning Potential?
Loss of earning potential (or loss of future earnings) refers to the income you will lose in the future due to permanent or long-term effects of your injury. If your injury prevents you from returning to your previous job or limits your ability to work at full capacity, you may experience a permanent reduction in your earning potential. This is often the case in severe injuries that result in disability or long-term physical limitations.
To calculate loss of earning potential, factors such as the following are considered:
- The nature of the injury
- Your profession and qualifications
- Age and work history
- Wage growth and inflation
Documentation And Evidence
To ensure accurate calculations, evidence is crucial. Here are some types of documentation that may be required to support your lost wages and earning potential claim:
- Pay stubs and tax returns
- Medical records
- Employer statements
- Expert testimony
Once all relevant documentation and evidence is collected, a calculation will be made based on the specifics of your case.
Lost wages and loss of earning potential can represent a significant portion of the compensation in a personal injury claim. Working with an experienced personal injury lawyer can help ensure that you receive fair compensation for these losses.