A new father to a beautiful daughter is driving home after a long day of work. He is eager to see his newborn and his wife, who has been with the baby all day by herself for the first time. As he goes through an intersection, another vehicle doesn’t heed its red light and sideswipes him. The crash is so violent that he blacks out and wakes up later in the hospital.
As the doctor explains his extensive injuries, it feels like his entire world is crashing down around him. He has a spinal cord injury, a broken leg, and a fractured wrist. While he will be able to make a full recovery, it will take months of treatment and physical therapy. The mental stress from knowing he can no longer help his wife with their new baby is made worse by the fact that he will not be able to return to work. With no more income, he doesn’t know how he and his family will afford his medical treatments, a new car, and monthly living expenses.
A lawsuit against the negligent party is the only hope he has to ensure that his family can successfully recover from this terrible accident. However, he fears that he will be unable to prove the sum of lost wages.
Stories like these are all too common in the DFW Metroplex. According to the Texas Department of Transportation, there is one reportable crash every 56 seconds. The compassionate and dedicated car accident attorneys at Branch & Dhillon, P.C. understand the stress of recovering from an accident. Between the treatments for the injury, the mounting bills from medical care, and repairing personal property damage, the mental load is enough to crush anyone. Our attorneys are committed to helping victims seek compensation while they focus on recovering from their accidents. We will focus on building a successful case to prove your damages and lost wages. Here is what you need to know about proving lost wages in your car accident.
What Are Lost Wages in a Car Accident Claim?
Lost wages refer to the money one would have earned from their employment had they not been injured in an accident. Lost wages include the following:
- Regular wages or base pay you would have earned during the time you took off due to your injuries
- Overtime you usually work or would have been required to work
- Sick days or vacation days you missed earning while you were recovering from your injuries
- Bonuses and commissions you would have been paid
- Salary increases, merit raises, or pay raises you were scheduled to receive but didn’t due to missed time at work
- Perks of employment life insurance and transportation allowances
- Retirement fund contributions you missed while recovering from your injuries
The compensation one can receive is based on the sum of money they would have earned from the date of their accident to the settlement or judgment. However, the lost wages for which the injured party is seeking compensation must be directly tied to the injuries they sustained from the accident. The injuries must have caused the person to miss work, either because they were receiving medical treatment or the injuries prevented them from performing their job. Lost wages due to a damaged car and lack of transportation will not apply.
Can I Still Seek Compensation for Lost Wages If I Am Self-Employed?
During a personal injury claim, the same rights to lost income protect self-employed individuals as those who earn a wage from an employer. However, self-employed individuals, such as freelancers, independent contractors, and gig workers, will face an uphill battle to determine and prove their lost wages.
The income that will be considered lost will be primarily based on the normal workload that one typically has added to the amount of work they missed. There are several ways in which a self-employed person can show lost wages:
- Showing their tax returns
- Showing 1099-MISC forms from the previous year
- Email, text, or order correspondence from clients and potential clients
- Profit and loss statements
- Accountant-provided documents
Insurance companies tend to push back harder when self-employed individuals attempt to prove lost wages. It is essential to have an experienced car accident attorney to fight by your side. The attorneys at Branch & Dhillon can help you gather the proper documentation to prove your lost wages.
Can I Seek Compensation for Reduced Earning Capacity?
Car crashes are horrific and often lead to devastating and life-altering injuries. Some car accident victims may be left with long-term or permanent disabilities that reduce their earning capacity by making them unable to return to their jobs.
Victims of car accidents can seek compensation immediately for loss of income due to their injuries and claim reduced or lost earning capacity. The injured party must be able to show the following to claim reduced earning capacity:
- Documentation of earnings history
- Lifetime work expectancy and the remaining years they could have continued working if they had not been injured
- Current capacity and the ability to learn a new trade
- Victim’s education and training
Putting a value on lost earning capacity is a complex process that insurance companies will argue against. Don’t let the insurance companies bully you—seek the aid of a reputable car accident attorney to ensure that your claim is set up for success.
Types of Compensation for Lost Wages in Texas
Lost wages are the income one has been unable to receive due to their injury. Here is a breakdown of the types of compensation that an individual may seek in their claim for lost wages:
- Regular wages
- Overtime pay
- Tips and bonuses
- Self-employed income
- Benefits such as sick leave or pension
- Disability insurance benefits
- Retirement benefits
How To Prove Lost Wages After a Car Accident in Arlington, TX
The injured party is only entitled to lost income for the time they needed to take off work to heal. The injuries must directly result from the accident and not due to an outside cause, such as not following the doctor’s instructions.
Insurance companies will try to argue that you did not need time off work, so it’s important to keep all documentation showing your injuries and records of your treatment plan.
The following documentation can ensure that the insurance companies cannot argue against your case:
- A physician’s statement about your injuries and how they could affect your work. This statement should also include information about when you can be cleared for work and whether there are any restrictions for movement or tasks because of your injuries.
- Medical records that show the injuries and treatment plan
- Timesheets
- Tax returns
- Pay stubs
- W-2s
- A letter from your employer showing that you missed time from work
Speak With Your Company’s HR Department
Your human resources department can provide a written statement about your benefits and pay. Ensure this statement includes the benefits used and the time missed while recovering. It is also a good idea to get a letter from your employer that verifies you did lose income, wages, or any upcoming promotions.
How Are Lost Wages Calculated in an Arlington Car Accident Claim?
Lost wages are calculated as the number of missed work hours multiplied by the victim’s hourly wage. For example, if the victim earned $20 an hour and missed 80 hours of work, the base lost wages would be $1,600.
For salaried victims, the calculation is the salary divided by the number of workday hours in a year, which is 2,080. This number creates the hourly wage, which is multiplied by the number of missed work hours. For example, if an employee makes a $60,000 salary, their hourly rate would be $28.85. If this employee missed 120 hours of work, their lost wages would be $3,462.
This formula only calculates base lost wages; it does not include the other wages that could have been lost, such as:
- Overtime pay
- Promotions
- Bonuses
- Raises
- Loss of benefits
- Reduced earning capacity
These wages will be calculated differently and processed on a case-by-case basis.
How an Arlington Car Accident Lawyer Can Help Prove Lost Income
Whether you submit a claim to the insurance company or go directly after the injured party through a personal injury lawsuit, you will need a car accident attorney on your side. Branch & Dhillon, P.C. are the most trusted car accident attorneys in Arlington, Texas, and the surrounding areas. Our experienced lawyers can:
- Handle insurance negotiations
- Gather necessary evidence and documentation to show your injuries and loss of income
- Prove the full extent of your damages
- Calculate lost wages accurately
- File a lawsuit
How Does Branch & Dhillon Help Me Submit My Lost Wages Claim?
When you are seeking compensation for lost wages due to injuries caused by a negligent driver, our attorneys can help you with the following:
Making a Claim to Your Insurance Company
In cases where the negligent driver was not insured or underinsured, an uninsured or underinsured motorist claim must be submitted. When submitting a claim for lost wages through your own insurance company, you must ensure you meet their requirements. This includes gathering and submitting the following:
- Medical documentation
- Employment authorization forms
- Proof of wages, such as pay stubs
- Tax returns
Making a Claim to the At-Fault Driver’s Insurance Company
A claim can also be made to the at-fault driver through their liability bodily injury coverage. As with your insurance company, you will want an experienced legal team to provide the evidence to show your injuries and proof of lost wages. This means presenting documentation such as medical statements concerning your injuries, treatment plans, and employment authorization forms.
Filing a Lawsuit Against the Negligent Party
Branch & Dhillon, P.C. can create a detailed and accurate statement about your lost wages to show the court. Without this statement, your claim could be thrown out without being considered.
The attorneys at Branch & Dhillon, P.C. are dedicated to fighting for the right to fair compensation for the individuals of Arlington, Texas, and the surrounding areas. Our lawyers work around the clock to ensure that we have the proper evidence to prove that your injuries from the accident are what caused your lost wages.
Contact our attorneys today for more information on our services or to schedule a free, no-obligation consultation. During this consultation, we will review the facts of your case and help you decide what legal action to take.
Proving Lost Wages FAQs
You will need to show the following documentation to prove lost wages:
– A physician’s statement about your injuries and how they affect your work
– Medical records and treatment plans
– Timesheets
– Tax returns
– Pay stubs
– W-2s
– A letter from your employer showing that you missed time at work
Yes! Texas law protects self-employed individuals and gives them the same right to lost income during a personal injury claim as individuals who work for an employer.
This isn’t likely unless there is evidence that your car accident caused severe emotional damages that resulted in missed time at work. For example, if you were involved in a car accident where you came out unscathed but your family member in the same car lost their life or was seriously injured, this could result in emotional trauma. This trauma could potentially cause one to miss time from work.
No. The State of Texas does not have personal income taxes and, therefore, does not tax personal injury settlements or verdicts.
The at-fault party’s insurance company is responsible for paying the damages caused by a car accident. This includes lost wages as well as the following:
– Personal property damages
– Medical expenses
– Pain and suffering