How Are Lost Wages Calculated?

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Being unable to work after an accident or personal injury can cause severe financial distress for injured victims and their families. If another party caused your injuries, they could be financially liable for your lost wages and other damages. An experienced personal injury attorney can help you calculate your lost income and other losses in a personal injury claim.

Proving Lost Wages After an Injury or Accident in Seattle, WA

The loss of income in a personal injury case falls under the category of economic damages. Economic damages include lost wages and medical bills, out-of-pocket expenses, and rehabilitative care.

Lost wages include more than hourly income or salaries.

Examples of income included in a lost wages claim are:

• Hourly wages
• Salaries
• Overtime pay
• Tips
• Freelance work
• Commissions
• Bonuses
• Seasonal income
• Part-time pay and gig work
• Independent contractor and self-employment income

In addition to income and earnings, lost wages can include other items. They can consist of paid time off you used or would have earned had you been able to work, such as sick time and vacation time. Lost wage claims can also include matching retirement funds from your employer and other benefits and perks you receive as an employee.

You will need thorough evidence of your lost wages. Including all sources and forms of income in your personal injury claim is crucial.

Evidence of a loss of income includes, but is not limited to:

• A letter from your employer verifying your lost wages
• Copies of 1099s, W2s, tax returns, pay stubs, income statements, and other proof of income
• Copies of employee handbooks detailing benefits and retirement contributions

In addition to the proof of lost wages, you must also have medical evidence proving that your injuries prevented you from working during a specific period. If the insurance company disputes your claim, we can help you access medical specialists to provide expert opinions regarding the restrictions and limitations caused by your injuries.

How Do You Calculate the Value of Lost Wages in a Personal Injury Claim?

Some lost wage claims are straightforward. Calculating the amount of salaries and hourly wages you would have earned during a specific period is not too difficult. If you earned overtime pay or tips, we may agree with the insurance company to use an average earned over the six to 12 months before the accident to estimate those amounts. The same might be true if you earned commissions or bonuses.

However, if your income is based on seasonal work or fluctuates because you are self-employed, calculating wage losses could be challenging. Likewise, if you are able to work but not at full capacity, it complicates calculating lost wages.

In these cases, we may work with financial professionals and other experts to determine the best estimate of income you would have earned based on your earnings before the accident.

Calculating the Value of Diminished Earnings and Future Lost Wages in a Personal Injury Case

If your injuries cause a permanent disability or impairment, your personal injury recovery may also include future lost wages and reductions in earning capacity. Future loss of income is based on many factors.

Factors used to estimate future income losses include:

• Your skills, education, and experience
• The type and severity of your impairment or disability
• Your profession or job
• The future outlook for your job or profession
• Your age now and your anticipated retirement age
• Your ability to earn and perform a new trade or skill
• The anticipated rate of inflation

Future lost wages equal the amount you would have earned had you not been injured. Diminished earning capacity is the difference between what you can earn given your impairment and the amount you would have earned without an impairment.

Calculating future lost wages requires assistance from numerous experts. A car accident Attorney in Seattle, WA may work with economists, vocational experts, medical specialists, financial professionals, and other experts to determine the full extent of the loss of income your injuries will cause.

Does Shared Fault Impact a Lost Wages Claim in Washington State?

According to Washington’s pure comparative fault law, being partially to blame for causing your injuries does not prevent you from recovering compensation for damages. However, the compensation is reduced by your level of fault.

Therefore, if a jury determines you were 35% to blame for causing a car accident, your non-economic and economic damages are reduced by that percentage. The reduction in damages includes any portion of the award that applies to lost wages and diminished earning capacity.

Insurance companies often use comparative negligence to undervalue damages. However, there is more incentive to try to blame the victim for causing their injury when future lost wages are involved. Future lost wages over 20, 30, or 40 years could total millions of dollars.

Therefore, be cautious when speaking with the insurance company about your claim. Your statements could be twisted to imply that you are partially at fault for causing your injuries.

What Is the Deadline to File a Personal Injury Claim for Lost Wages in Washington?

The statute of limitations for filing most personal injury lawsuits in Washington State is three years from the accident or injury date. Because lost wages are part of your personal injury claim, the filing deadline would also be three years.

However, exceptions to the statute of limitations could change the deadline. Therefore, you should speak with a Seattle personal injury attorney as soon as possible. If the deadline passes, you could lose the right to sue the party who caused your injuries and damages.

A Seattle Personal Injury Lawyer Can Help You Calculate Your Lost Income and Other Damages

Loss of income can be a significant portion of your economic damages after a personal injury or accident. Call Davis Law Group Car Accident and Personal Injury Lawyers at 206 727 4000 to schedule a free case evaluation with an experienced Seattle personal injury lawyer. We’ll evaluate your case and discuss the value of your damages, including lost wages and earning capacity.