After you’re injured in a car accident, your ability to earn a living may be compromised. You may need to take time off work during your recovery, and you may not be able to return to the same job you had before the crash. Some companies have paid sick time, but many don’t. And every day you’re unable to work means medical bills continue to pile up without a way to pay for them. The financial strain of the accident adds to the physical and emotional stress of your recovery.
The Kansas City accident attorneys at Peterson Law Firm understand that you will likely need lost wages compensation after you’re injured in a crash. We know that being without a paycheck can be just as traumatic as dealing with your physical injuries. Here, we discuss how to document and calculate your lost wages following your accident.
The Basics: Lost Wage Claims in Missouri
When you seek lost wages compensation, it’s to cover the income you've already lost due to your injuries. Your car accident personal injury claim pursues compensation for the income you would have earned if you hadn't been injured. This typically includes the following:
- Regular salary or hourly wages
- Overtime
- Bonuses
- Commissions
- Self-employment income
If you are forced to use sick leave or vacation time while you recover, your compensation may cover those benefits, also. Having to use paid time off is a financial loss for many people, and it’s a benefit that has real value.
When another driver is negligent and causes injuries, Missouri law recognizes that the accident victim deserves to be made whole. This means restoring you to the financial position you would have been in if the accident never occurred. Our Kansas City accident attorneys will help ensure that every aspect of your lost income is properly calculated and included in your claim.
Calculating Current Lost Income
Calculating lost wages depends on your employment situation. If you’re a salaried employee, the process is fairly straightforward. However, if you’re self-employed, you may find it’s more difficult to prove how much you make. But it’s important to know that even if you’re a part-time worker or you were between jobs when the crash occurred, you still may have a valid lost income claim. That’s why it’s crucial to hire a Kansas City accident attorney to help you collect the documentation to help prove your financial status at the time of the accident.
Documenting your lost wages starts with gathering evidence of both your normal work schedule and the time you've missed due to your injuries. The calculation process varies based on your employment type and wage structure.
Hourly Employees
If you work as an hourly employee, the calculation begins with your hourly rate multiplied by the number of hours missed. If you typically work 40 hours per week at $20 per hour and missed two weeks of work, your lost wages would amount to $1,600 (40 hours × $20 × 2 weeks). Additional calculations are needed if you regularly work overtime or receive extra pay for working weekends and holidays.
Salaried Employees
Salaried employees need to convert their annual salary to a daily or weekly rate. If your annual salary is $52,000 and you missed two weeks of work, your lost wages would be $2,000 ($52,000 ÷ 52 weeks × 2 weeks). Any type of additional compensation, such as bonuses or commissions, must be considered separately.
Self-Employed and Gig Workers
If you’re self-employed or own your own business, you may face more complex calculations. Our attorneys will help you compile evidence to prove your typical income, including tax returns, profit and loss statements, invoices, and records of previous earnings. The goal is to show what you would have reasonably earned during the period you were unable to work.
Gig workers and those with variable income will need to demonstrate their average earnings. This might involve showing income from the months preceding the accident or comparing it to the same period in previous years if your work is seasonal. Our accident attorneys will help you gather documentation, such as pay stubs, employment records, tax returns, and a letter from any employer confirming your position, pay rate, and time missed. Medical documentation linking your injuries to your inability to work is also helpful.
Medical Records
Medical records can be especially important for a lost wages claim. Documentation about your injuries and your doctor’s notes should provide insight into the extent of your injuries, your symptoms, and how they’ve affected your ability to work. Medical records are invaluable because they provide a connection between your injuries and the lost wages.
Calculating Future Income Losses
Some injuries result in long-term or permanent disabilities that affect your earning capacity in the future. These future income losses represent compensation for earnings you would have received if you hadn't been injured and could continue your previous career path.
Future income losses can include the following:
- Reduced earning capacity if you have to work fewer hours or are unable to pursue expected promotions or career advancements
- Reduced ability to perform all your previous job functions or can’t work as efficiently as before, leading to a forced change to a lower-paying job
Our attorneys may use expert testimony from an economic specialist to calculate your future income losses. The specialist considers your age, skill level, education, work history, and remaining work years to project your expected career trajectory and earnings. The analysis also accounts for the wage increases you could have expected and inflation.
Missouri courts recognize many types of diminished earning capacity. You may receive compensation if your injuries force you to work reduced hours, take more frequent breaks, or retire earlier than planned. Our attorneys will help document how your injuries have impacted your current job, as well as your entire career path.
If you return to work and your injuries limit your career advancement or don’t allow you to take advantage of certain career opportunities, you may have valid claims for future income losses.
Beyond Lost Wages: Lost Benefits and Opportunities
After an accident, it’s possible to lose much more than your regular paycheck. Other economic opportunities can be impacted after you’re injured in a crash. It’s important that these additional losses are included in your personal injury claim.
Many companies offer employment benefits that have significant financial value, including the following:
- Stock options
- Health insurance
- Profit-sharing plans
- Retirement contributions
- Sick leave
- Vacation time
If you lose any of these benefits, their value should be included in your personal injury claim. For example, if you must take vacation time and/or sick time during your recovery, that is an economic loss and should be part of your claim.
Business owners and people who are self-employed face unique challenges in documenting lost opportunities, but these opportunities may include the following:
- You missed deadlines
- You were unable to bid on contracts
- You lost clients due to your injuries
If you’re a student who was injured in an accident, and your injuries delayed your education or prevented you from starting a job, it can have a long-term financial impact and should be considered in your claim.
Work With Our Kansas City Accident Attorneys
Navigating the complexities of lost wage claims after a car crash can take a lot of work and requires gathering the right evidence to prove your financial situation—now and in the future. When you’re trying to focus on your physical recovery, this can be a real challenge. A Kansas City accident attorney with experience in lost income claims can make a significant difference in the compensation you receive. We will help you collect crucial documentation, work with economic experts if necessary, and negotiate with insurance companies to ensure your lost wages—both past and future—are fully compensated.
We understand how insurance adjusters evaluate these claims and can counter tactics designed to minimize your settlement. Don't let the financial impact of a car accident derail your future. Contact our Kansas City accident attorneys today to discuss your claim. Read our case results and learn how we’ve helped other clients recover lost wages and obtain fair compensation.
