If you get hurt in an accident in Minnesota, your injuries may interfere with your ability to go to work and perform required job-related duties. This can make it difficult to keep up with your bills and required medical care. It is important to understand how lost income is calculated in a personal injury case in Minneapolis so that you can fight for fair compensation.
What Is Covered Under “Lost Wages”?
“Lost wages” is a broad type of economic damage award that is often included in a personal injury settlement in Minnesota. It is an umbrella phrase that can refer to many different sources of income that are no longer available to you because of your injuries, such as:
- Your daily working wage or salary
- Tips
- Typical overtime pay
- Job-related benefits or perks
- Paid vacation time or sick days
- Commissions or performance bonuses
- Freelance or independent contractor income
- Seasonal pay or gig work
- Retirement or 401(k) contributions
- Loss of business opportunities
You may sustain lost wages for a temporary amount of time, such as the number of days it takes to recover from your injuries and return to work at full or partial capacity. You may also have long-term lost wages if the accident gave you a permanent disability that impedes your ability to work.
Calculating Lost Wages in a Personal Injury Case
What Is the Value of My Lost Wages?
Calculating the value of your lost wages for the purpose of a settlement or judgment award requires a different process depending on whether you are a salaried worker or receive an hourly wage:
- Salary. If you have a set salary, divide your annual salary by 52 to calculate your weekly earnings. Then, divide this by five to get your daily wage rate. Multiply this by the number of days that you missed and will continue to miss work due to your injury.
- Hourly. If you are paid by the hour, take your hourly wage rate and multiply it by the number of hours you will miss because of your injury. Don’t forget to factor in average tips, bonuses, commissions or other additional earnings.
If you are a gig worker whose earnings fluctuate, calculate your average daily income from the previous year and use this to estimate an accurate value for your injury-related lost wages.
Calculating Lost Future Capacity to Earn
When calculating damages for the loss of the ability to earn due to a catastrophic injury or disability, you must take additional factors into account. This includes your estimated career trajectory had you not been injured, your age and the number of years you likely would have remained in the workforce, expected raises or promotions, and adjustments for inflation.
What Evidence Should I Collect to Prove Lost Wages?
To collect a fair amount in lost wage damages during a personal injury case, you must have the right supporting evidence. If you can, collect the following wage and financial documentation to help you prove lost wages:
- Wage and income statements
- Paystubs
- Bonus or commission history
- W2 statements
- 1099 tax forms
- Tax returns
- Letters from your employer
- Self-employment or business income
- Income trends in your profession
- Injury documentation
- Testimony from financial and vocational experts
If you need assistance preserving and gathering the correct evidence to prove a lost wage claim or calculating a fair amount to demand in a settlement, contact a personal injury lawyer at Goldenberg Lauricella, PLLC. We offer free case evaluations and are here to help you fight for the lost wage reimbursement you deserve.