When you sustain an injury that prevents you from working, the bills can mount up fast. In this situation, you’ll probably ask, “How are lost wages calculated in a lawsuit?”
The answer can be more complicated than you think, especially after long-term injuries. Talk to a personal injury lawyer in New York to learn how lost earnings work into your claim.
What Does “Lost Wages” Cover?
Every year, around 1.5 million New Yorkers visit the ER. Many of these injured people will be unable to work, some just for a few days, others for months or years.
If someone else’s negligence causes your accident and harms your ability to work, your personal injury claim may cover all types of lost earnings, including:
- Your base salary or hourly pay
- Bonuses and other job-related perks
- Employee benefits like 401(k) and health insurance
- Overtime pay
You can file a claim not only against an individual or a business but also against the City of New York if the City is responsible for your injury (for example, through neglecting public road or sidewalk maintenance). Note that you must submit a Notice of Claim within 90 days of the accident when taking legal action against the City.
In fiscal year 2023, the City of New York settled over 13,000 claims and lawsuits for a total amount of $1.45 billion.
Salaried vs. Hourly Employees
Calculating your base lost earnings is fairly straightforward. The answer to “How are lost wages calculated in a lawsuit?” depends on whether your employer pays you an annual salary or hourly wages.
- If you’re a salaried employee, divide what you earn in a year by the annual number of work days. Multiply this amount by the number of missed days.
- If you’re an hourly employee, multiply your missed hours by your average hourly wage.
Example 1: Salaried Employee
You earn $65,000 a year and work 260 days a year on average. Thus, your workday is worth $250. If you missed 30 work days because of an accident, your base lost earnings would be $250 x 30 = $7,500.
Example 2: Hourly Wages
You earn $25 an hour and work eight hours a day. You missed 20 work days, equaling 160 work hours. This adds up to $25 x 160 = $4,000.
Documenting Lost Wages
Detailed records are the key to claiming compensation for lost wages. You’ll need to provide pay stubs, bank statements, tax returns, invoices, and any other documentation proving your earnings. Additionally, gather clear medical records documenting the number of days you were unable to work.
Calculating Lost Earning Capacity After Long-Term Injuries
“How are lost wages calculated in a lawsuit?” is an even trickier question if you suffered a long-term or permanent injury that could topple your entire career.
Lost earning capacity is more difficult to calculate than short-term lost wages. Your lawyer may enlist a vocational consultant to reach an estimate based on:
- Age. A permanently incapacitated accident survivor who loses decades of potential earnings may claim a higher compensation than someone who only has a few years until retirement.
- Profession. If your career centers around physical labor, a long-term injury may harm your future earnings more than if you were an office worker.
- Wage trajectory. If you were progressing toward a substantial raise or a promotion before the accident, you may potentially claim higher lost earnings.
- Other job options. Assuming you can still work to some extent, lost earning capacity would comprise the difference between what you could currently earn and what you could have earned if you hadn’t suffered the injury.
Why Work With a Personal Injury Attorney in New York?
According to the Lawsuit Information Center, the median compensatory award in New York personal injury trials is over $287,000. While only a small percentage of personal injury cases end in trial, large claims may still involve complex calculations and lengthy negotiations.
You need a dedicated legal professional in your corner to protect your interests. A seasoned personal injury lawyer can:
- Help you figure out your claim’s real worth
- Advocate for your rights when communicating with insurance companies
- Protect you from underhanded tactics that seek to undermine your claim
- Advise you whether to accept a settlement offer
- Represent you in court if the other side refuses to cover your eligible losses
Need a Personal Injury Lawyer in Queens, NY? Call Elliot Ifraimoff & Associates, PC
If you are asking, “How are lost wages calculated in a lawsuit?” choosing the right personal injury lawyer could give you a better chance of claiming the maximum available amount of lost earnings.
At Elliot Ifraimoff & Associates, PC, we fight for injured people’s rights. Our experienced legal team has successfully resolved many auto accident, slip-and-fall, and other personal injury claims, with a track record of multimillion settlements in some cases. Schedule your free consultation today.
PREGUNTAS FRECUENTES
Could disability benefits influence my lost wage claim?
Yes. For example, if you collect disability benefits and file a personal injury lawsuit, the court might reduce your award accordingly. Talk to your lawyer to learn how any benefits may impact your claim.
Is there a cap on compensation for lost wages in NY?
While New York doesn’t impose a statutory cap on lost wages in personal injury cases, the liable party’s insurance policy may limit the amount you can claim. Additionally, in no-fault car accident claims, the maximum coverage for lost earnings is usually $2,000 a month for up to three years.
Can I claim compensation for lost earnings if I’m an undocumented immigrant?
Yes, you can seek compensation for lost wages in a personal injury claim, regardless of your immigration status. However, documenting lost earnings may be more difficult if your employer pays you “under the table.”
How are lost wages calculated in a lawsuit if I’m self-employed?
Proving lost earnings might be complicated if you’re an independent contractor or a seasonal worker with a fluctuating income. You’ll need to supply invoices, contracts, tax documentation, and any other records that can help evaluate how much you earn on average.