Lost Wages
What counts as Lost Wages? How much am I compensated when I miss work due to an injury?
Lost wages are income you miss out on because an injury keeps you from working or reduces the amount of work you can do. If you are hurt in a car accident or on the job, you may be able to recover some or all of that lost income, depending on your case and the law that applies.
Lost wages can include pay you missed while recovering, income you lost because you had to work fewer hours, or money you could not earn because your injury limited your ability to do your job.
Lost wages are not automatic. You generally need to show that your injury caused the loss and provide records to support the amount you claim.
WHAT COUNTS AS LOST WAGES?
Depending on your situation and the law that applies, lost wages may include:
Regular pay: Hourly wages or salary you missed while unable to work.
Overtime: Overtime pay you likely would have earned if your injury had not kept you from working.
Tips and commissions: Income you missed from tips, sales commissions, or performance-based pay.
Missed work hours: Pay lost when you could work only part-time or had to leave work for medical appointments or treatment.
Reduced earnings: Money you lost because you had to accept fewer hours, lighter duties, or a lower-paying position due to your injury.
Self-employment income: Business or professional income you can show you lost because your injury prevented you from working.
Future lost earnings: In some cases, income you may lose in the future because your injury limits your ability to earn a living.
Not every type of income loss is covered in every case. The rules depend on whether your claim involves a car accident, workers’ compensation, or another type of claim.
WHAT DOES NOT COUNT AS LOST WAGES?
You cannot necessarily claim every dollar you believe you would have earned. For example:
Time off that did not cause an actual loss of income may not qualify as lost wages.
Expected bonuses, overtime, tips, or commissions may require proof that you would likely have earned them.
A general concern that you might earn less in the future is not enough by itself to establish future lost earnings.
Paid leave, disability benefits, or workers’ compensation payments may affect how a wage-loss claim is calculated.
Your attorney can review the facts and determine which losses may be included in your case.
HOW DO LOST WAGES AFFECT AN AUTO INJURY CASE?
If you were injured in a car accident, your injuries may prevent you from working for days, weeks, or longer. You may be able to seek compensation for income lost because of the accident.
For example, suppose you earn $1,000 per week and your injuries prevent you from working for three weeks. You miss $3,000 in gross pay. That amount may be a starting point for calculating your lost wages, subject to supporting evidence and the rules that apply to your claim.
You may also have a claim for reduced earnings if you return to work but cannot perform your usual duties or work your usual hours. If your injuries affect your ability to earn income in the future, you may have a separate claim for future lost earnings.
HOW ARE LOST WAGES PAID OUT?
Depending on your coverage and the circumstances, lost income may be addressed through a claim against the at-fault driver's insurance, applicable personal injury protection (PIP) or other first-party benefits, or another available source of coverage.
The amount available and the requirements for payment vary by state and policy. A lost-wage claim is also separate from any claim for medical bills, pain and suffering, or other damages.
HOW DO LOST WAGES AFFECT A WOKERS’ COMP CASE?
Workers’ compensation (WC) is a system that provides benefits for qualifying work-related injuries and illnesses. If your injury happened while performing work-related duties, you may qualify for wage-replacement benefits.
Workers’ compensation generally uses specific benefit rules rather than simply paying every dollar of wages you missed.
Common types of wage-replacement benefits include:
Temporary total disability: Benefits for a period when your work-related injury prevents you from working.
Temporary partial disability: Benefits that may be available when you return to work with restrictions and earn less than you did before your injury.
Permanent disability benefits: Depending on the injury and applicable law, you may qualify for benefits if you have lasting limitations or a permanent loss of function.
Eligibility, benefit amounts, waiting periods, and the length of payments depend on the state and the facts of your case.
For example, if you were earning $1,000 per week before a covered work injury and your injury prevents you from working, your workers’ compensation benefit may be calculated using your average weekly wage and the state's benefit formula. It may not equal your full paycheck.
Important: Workers’ compensation is different from a regular personal injury lawsuit. In many cases, you do not need to prove your employer was at fault to qualify for workers’ compensation benefits. However, you generally must show that the injury or illness is covered by the workers’ compensation system.
