What are Lost Wages?

Lost wages refer to the income an individual is unable to earn due to an injury, illness, or other circumstances that prevent them from working. This financial loss can be temporary or permanent and is commonly claimed in personal injury cases to compensate for lost earnings during recovery.

Key Points About Lost Wages:

• Compensates for income lost due to inability to work after an injury.
• Can include past lost wages (time already missed) and future lost earnings (expected future income loss).
• Often requires proof of employment, pay stubs, or tax returns to support the claim.
• May cover additional financial losses, such as lost bonuses, commissions, or benefits.

How are lost wages calculated?

Lost wages are typically calculated based on the individual’s regular income, taking into account factors such as hourly wages, salary, or self-employment earnings. In some cases, financial experts may be needed to estimate future losses.

Factors considered in lost wages calculations:

• Hourly or salary rate: Based on current earnings at the time of injury.
• Number of missed workdays: Verified by employer documentation.
• Lost benefits and bonuses: Includes commissions, overtime pay, and paid time off.
• Future earning potential: Assessed in cases of long-term or permanent disability.

What evidence is needed to prove lost wages?

To successfully claim lost wages, the injured party must provide clear documentation proving their inability to work and the resulting financial losses.

Common evidence includes:

• Pay stubs and tax returns to show past earnings.
• Employer statements verifying missed work and income.
• Medical records proving the injury prevented work.
• Expert testimony for self-employed individuals or those with variable income.

Can self-employed individuals claim lost wages?

Yes, self-employed individuals can claim lost wages, but proving income loss may be more complex. Instead of pay stubs, they may need to provide business records, tax returns, or client invoices to demonstrate their earnings before and after the injury.

Key documentation for self-employed claims:

• Previous tax returns and financial statements.
• Client contracts or invoices showing lost opportunities.
• Bank statements reflecting income trends before the injury.
• Expert analysis for projected income losses.

Conclusion

Lost wages compensation is essential in personal injury claims, helping injured individuals recover financial stability while they heal. Proper documentation and expert support can strengthen a claim and ensure fair compensation for both past and future earnings.