How Do I Determine Lost Wages in Personal Injury Litigation?

For most people, a little time off of work now and then can be a welcome break from the demands of earning a living. However, it’s a different story for individuals out of work because of harm caused by a personal injury.
Whether it’s a car accident, medical malpractice, or a slip and fall, when you’ve been harmed by someone’s negligence, time out of work is more likely filled with physical pain and financial anxiety.
Under Pennsylvania law, victims in personal injury cases have the right to recover compensation for their financial losses, including lost income. However, the path to this crucial economic support is often filled with challenging questions. How do I determine lost wages in personal injury litigation? What kind of earnings are included? How do I prove what I’m owed?
This blog post will explain what you should know about getting lost wages after a personal injury. We’ll cover how lost wages are calculated, what proof you’ll need, and how to navigate the process.
How Do I Calculate My Lost Wages in a Personal Injury Claim?
Put simply, lost wages are the earnings you lost while you were out of work due to your injury. They refer to any compensation you would have earned if not for another person’s negligence. This can include:
- Regular wages—the hourly rate of pay or salary for days missed;
- Overtime—hours of planned overtime you would have earned at a time-and-a-half rate;
- Bonuses—any scheduled or expected performance-based payments you missed due to your inability to work;
- Commission—lost sales-based earnings you would have earned during your recovery period;
- Paid time off—the value of PTO or vacation days you used while recovering; and
- Benefits—employer-covered health insurance premiums or retirement contributions.
Sometimes, lost wages can also include future compensation. If your injury requires long-term treatment or involves permanent limitations, you could also be eligible for compensation for:
- Future lost wages—earnings you will lose in the future if your injury prevents you from returning to work or working in the same capacity as before the injury; and
- Diminished earning capacity—a reduction in your ability to earn a living, whether due to permanent physical limitations or the need to switch to lower-paying work.
Determining future lost earnings can be challenging. No one-size-fits-all lost wages calculator can compute exactly how much you could have earned in the future if not for the accident. Instead, quantifying lost future compensation is best done with the support of an attorney.
An experienced personal injury lawyer has the training and experience to weigh all the relevant factors—such as your age, job, skills, and medical condition—and fairly assess your injuries’ long-term professional and financial impact.
How Do I Determine Lost Wages in Personal Injury Litigation If I’m Self-Employed?
If you are self-employed, determining the value of your lost wages can be more complex. Self-employed individuals don’t have a standard, regular paycheck they can use to tally up the compensation they missed over their recovery period.
Instead, quantifying your lost earnings generally requires a thorough analysis of your financial records from the past year or more. This often involves reviewing your tax returns, invoices, bank statements, and other documents to establish an average annual income that can be the basis for your lost wage calculations.
It’s also important for self-employed victims to account for any lost opportunities. For example, if your injury caused you to miss a key contract, you can include the projected income in your lost wages claim.
For self-employed individuals, the support of a personal injury attorney is critical to ensure your injury’s financial losses are calculated accurately.
What Proof Do I Need for a Lost Wages Claim?
No matter what kind of work you do, having proper documentation to back up your claim for lost income is crucial. The following are some of the most essential pieces of information you need in a lost wages claim:
- Employment documentation. Pay stubs, job offer letters, or direct deposit records can all help verify your regular pay rate or salary. An employment contract often outlines additional forms of compensation, such as bonuses or commissions.
- Proof of lost benefits. This could include documents confirming employer contributions to health or retirement plans. If you have to use paid sick or vacation days for your recovery period, ensure those are documented with HR in writing.
- Tax returns and financial records. Past tax filings, 1099 forms, and business-related invoices are essential, especially for self-employed people who need to demonstrate their expected income. It’s a good idea to gather several years’ worth of information to show consistency in your earnings.
- Medical records. Documentation from your healthcare provider is critical to link your injury directly to your absence from work. Get a statement from your doctor explaining in detail the nature of your injury and how it prevents you from doing your job.
- Employer letter. A written statement from your employer is important to specify precisely how many days or hours you were away from work. An employer’s letter can also confirm other details about your compensation, such as planned bonuses or benefits you lost.
Clear, thorough documentation of your professional and financial losses can strengthen your claim and increase the likelihood of a favorable outcome.
How to Get Lost Wages After an Accident in Philadelphia
The path of recovering lost wages after an injury can vary, depending on the type of accident, the extent of your injuries, and if insurers are involved.
For example, if you were in a car accident, you might seek compensation for lost wages through a claim with an insurance company.
Individuals who opted into Pennsylvania’s no-fault insurance system could file a claim with their own Personal Injury Protection (PIP) coverage to get financial relief for lost wages, regardless of who was at fault in the accident. If you enrolled in at-fault car insurance coverage instead, you would file your compensation claim with the insurance company of the driver responsible for the accident.
For victims harmed under other circumstances, such as slip and fall cases or medical malpractice, filing a personal injury lawsuit may be the most effective way to recover lost wages. To do so, you should secure legal representation, who will file a complaint against the party at fault in court.
Your attorney will investigate the situation, gather evidence, and try to negotiate a settlement before trial. While some cases resolve within a few months, others can take over a year, depending on the situation’s complexity and court schedules.
In any case, it’s important not to wait too long to take action. Pennsylvania law has a two-year statute of limitations on personal injury claims. If you miss this deadline, you can lose your chance to recover compensation.
Call (215) 999-2244 or fill out our Free Case Evaluation form below.
Fighting for Injured Victims to Reclaim Their Lives
Determining lost wages can be one of the most complex parts of a personal injury claim. If you’re struggling to calculate your income loss or facing resistance from insurers, you don’t have to navigate this process alone. At Rosen Justice Injury Lawyers, we’re here to help you assert your rights and recover the compensation you need to heal.
With over 75 years of combined experience, our team of dedicated Philadelphia personal injury lawyers is ready to go the extra mile to get the justice you deserve. Contact our office today to schedule a free consultation and learn more about how we can help.