Lost wages

What are lost wages?

Lost wages compensate for income actually missed because of an injury, covering the period from the incident through recovery or return to work.

This is a documented past loss with a specific dollar figure, distinct from loss of earning capacity, which addresses permanent future reduction in ability to earn.

It is typically among the more straightforward economic damages to establish, since employment records and pay history provide direct documentation.

It covers the period through actual recovery or return to work, whereas ongoing or permanent effects on earning ability are addressed as a separate, distinct claim.

What can be included?

The category reaches beyond a simple missed paycheck calculation.

• Regular wages missed during recovery
• Overtime you would have worked absent the injury
• Bonuses and commissions you would have earned
• Used sick time and vacation time, which represent a real loss even without a missed paycheck
• Self employment income, documented through business records
• Lost opportunities such as a specific promotion or contract missed because of the injury

How is this proven for traditional employment?

Pay stubs, W-2 forms and a wage verification letter from the employer establish your rate and your actual absence from work.

Where overtime or bonuses were a regular part of your income, historical patterns from before the injury establish what would likely have continued.

A treating physician's note establishing the period of disability from work ties the medical picture to the specific dates claimed.

How is this proven for self employed or irregular income?

This requires considerably more preparation. Tax returns from prior years establish a baseline, and current year records including invoices and client communications establish the actual disruption.

An accountant or economist is frequently necessary to establish a reliable pattern where income fluctuates naturally, since a single bad month does not by itself prove the injury caused the loss.

Contemporaneous business records, including calendars showing cancelled work and client correspondence about the inability to perform, add credibility beyond bare financial statements.

Common questions

Can I claim lost wages if I used sick time instead of missing pay?

Yes. Used sick time and vacation time represent a real loss of a benefit you had earned, even though no paycheck was technically missed.

What if I am self employed with irregular income?

Establish a reliable baseline through tax returns and business records, and consider retaining an accountant or economist to support the specific pattern of loss.

Is this the same as loss of earning capacity?

No. Lost wages address income actually missed during recovery. Earning capacity addresses permanent reduction in future ability to earn, which is a separate and distinct claim.