How Are Lost Wages Calculated in a Personal Injury Claim?

LAW BLOG  •

April 8, 2020

A lost wage award is a common type of compensable damage during a personal injury claim in Texas. It refers to the plaintiff’s missed pay due to an injury, as well as his or her foreseeable loss of future income because of a serious injury or disability. Knowing how the courts in Texas calculate lost wages in a personal injury claim could help you as a plaintiff. It could enable you to accurately gauge what your claim might be worth, so you can demand a fair amount from a defendant. Always work with an attorney for an accurate calculation of your lost wages.

Existing Lost Wages Due to the Accident and Injury

First, you will need to assess your existing, or past, lost wages related to the accident and injury in question. If you have been out of work since the date of your accident, for example, the courts will add up all the pay you missed. This will take an analysis of old pay stubs in the weeks before your accident. You will need to provide these pay stubs as evidence of your lost wages. The courts may also request evidence such as W2s, tax documents or letters from your employer. An assessment of your past lost wages will also take into account other typical sources of income.

  • Benefits
  • Promotions
  • Overtime
  • Special projects
  • Commissions
  • Raises

You and your personal injury lawyer can add up all the money you most likely would have made were it not for your accident and injury to demand as part of your lost wage settlement. Then, your lawyer can collect evidence to help you prove the amount of your lost wages, as necessary. Existing lost wages is the most straightforward calculation in this category of damages. It typically involves adding up how many hours you missed and multiplying it by your average wage. Determining your future foreseeable lost wages can be more difficult, however.

Future Lost Capacity to Earn

A serious injury may also impact your ability to earn a living wage after the completion of your injury claim. You might remain in recovery for months or years, unable to go back to your previous position. During this time, your employer might offer you part-time hours or work in a limited capacity for less pay. A catastrophic injury could take you out of work completely or for life. You might need to find a new career suited for your permanent disability – one that may pay you less. You could recover compensation for all these wage-related losses in Texas.

  • Salary worker. Divide your annual salary by how many hours of work you complete per year, on average. If this is 40 hours per week, you would divide your salary by 2,080 (40 hours x 52 weeks). Then, take this number and multiply it by the number of hours you will miss work.
  • Hourly wage worker. Take your hourly wage and multiply it by the number of hours you missed from work. If your hours vary, base your calculation on an average taken from the last two or three months of work.

You might also be eligible to recover costs such as new training or going back to school to learn a new career because of a disabling injury. An experienced Houston personal injury attorney may be able to help you with your lost wage calculations. A lawyer will know all the places to look for earning potential, including raises and bonuses. A lawyer will also be able to negotiate with the defendant in pursuit of maximum compensation, not only for your losses of income but for your other accident-related damages as well: medical bills, pain and suffering, property damages, legal fees, etc. Finally, a lawyer could help you prove the existence of lost wages to an insurance company, judge or jury.

Every state limits the amount of time you have to file a claim.

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