Car accident injuries can make it impossible to work. Losing time from work—and the money that comes with it—can make the financial difficulties caused by a car crash even worse. According to government data, the average injured person loses $15,000 in wages after a car accident.
Fortunately, the law allows injured people to recover the money they lose when accidents cause them to miss work. Your lost wages are part of a set of damages called compensatory damages. These damages help return you to the same financial status you had before the accident. Let’s look at how you can recover lost wages after an Alabama car accident.
What Are Lost Wages?
Courts and lawyers use “lost wages” as a generic term to cover any earnings that a person loses as a result of a car accident. Lost wages can refer to many things.
Lost compensation – When people think about lost wages, this is usually what they mean. Lost compensation includes any work time lost as a direct result of the accident. This could include needing time off of work to heal, have surgery, attend physical therapy, or go to appointments.
Lost earning capacity – Also known as lost future wages, lost earning capacity looks into the future to ask how the accident will affect your ability to make money in the coming years.
Other lost income – Lost wages don’t just focus on what you earn directly. Other funds you might be able to recover include
- Expected overtime and bonuses,
- Sick days, PTO (paid time off), and vacation,
- Scheduled raises, and
- Retirement contributions.
How Are Lost Wages Calculated?
There are several formulas to calculate lost wages. They typically depend on whether you get paid by the hour, are salaried, are self-employed, or earn a commission.
Generally, hourly employees can take the number of hours they missed due to the car accident and multiply that by their hourly wage. So, if your accident caused you to lose 40 work hours and you make $10/hour, your lost wages would be $400. (Note that the number of hours missed must line up with what your doctors said about your limitations.)
The process is similar for salaried employees. If you earn an annual salary, take it and divide it by the number of hours you work each year. That’s your hourly rate. Then, you’ll multiply this by the number of hours you missed.
Things get a little trickier for people who earn commissions. Commission work depends on many factors and isn’t always predictable. So, your Birmingham accident attorney will look at your past earnings to get an idea of your average earnings over the same time during the previous year. They can use this average to calculate your lost earnings.
Calculating lost income for self-employed people can also present challenges. As most business owners know, income can fluctuate from year to year. If you’ve been in business for a few years, you can use prior year profits to establish your typical income.
How Do Lawyers Calculate Lost Future Earnings?
Estimating lost earning potential is different from calculating lost wages. While financial records can provide an idea of your past earnings, predicting how a car accident injury might affect your future income is harder. Some of the factors lawyers consider include
- The severity of your injuries,
- The need for ongoing medical treatment or rehabilitation,
- The number of years before your retirement,
- Your career performance (i.e., promotions, evaluations),
- Your education, licenses, or certifications,
- The market value of your work based on your location, and
- The market forecast for your profession
Because lost earnings require predictions, many other factors can come into play. An Alabama injury attorney can tell you more.
How Can I Prove Lost Wages After an Alabama Car Accident?
In your lawsuit against the person who hit you, you will be the plaintiff. In a car accident case, the plaintiff’s attorney must prove that the other driver was negligent. Then, they’ll have to prove that the accident caused the plaintiff to suffer physical, financial, and other harms.
When it comes to proving lost wages and lost earning capacity, you can help your Alabama accident lawyer by providing documents that prove your past income. Helpful documents for hourly and salaried employees include pay stubs, W-2s, and tax returns. For self-employed people, tax returns (including profit and loss statements) will also be helpful. Emails, letters, contracts, or other documents showing the accident caused you to lose clients or business opportunities will also be beneficial. If you work on commission, give your Birmingham injury attorney your past commission checks.
No matter how you are paid, give your Alabama accident attorney as much information about your medical condition, prior earnings, and job performance as possible. This will help them get you the highest possible amount of lost past and future wages.
Should I Talk to an Attorney About Lost Wages After a Car Accident?
Absolutely. An experienced Alabama personal injury attorney can tell you more about how lost past and future earnings are calculated. They can also help you gather the information you need to make a strong case. If necessary, they can hire an expert witness to help explain how much the accident cost you.
If you’ve been injured in a car accident and need help recovering lost wages or other damages, contact Collins Law, LLC. Our team will always greet you with a smile, keep you informed about your case, and work tirelessly to get you the compensation you deserve. To learn more about how we can help you, call us at 205-588-1411 or use our website’s online scheduling tool.