How to Calculate a Lost Wage Claim in a Personal Injury Case: A Comprehensive Guide

When you’ve been injured in an accident, your first priority is your health and recovery. However, personal injuries can have significant financial consequences, particularly if you’re unable to work due to your injuries. In personal injury cases, victims are often entitled to compensation for lost wages, which may include both past lost income and future lost earning capacity. Calculating a lost wage claim can be complex, especially when you’re dealing with the intricacies of Louisiana law and insurance companies. Below, we break down the key components involved in calculating a lost wage claim and explain the types of evidence typically used, along with the professionals who may need to be consulted, such as economists, life care planners, and vocational rehabilitation specialists.

What Are Lost Wages?

Lost wages refer to the income that a victim would have earned had they not been injured. This includes not only the time immediately after the injury but also any future lost income due to long-term or permanent disability. Calculating lost wages requires detailed information about your pre-injury earnings and the extent to which your injuries have impacted your ability to work.

In Louisiana, you have the right to seek compensation for both past lost wages (the wages lost between the time of the accident and the settlement or trial) and future lost earning capacity (the expected loss of earnings due to long-term impacts of the injury).

How Are Past Lost Wages Calculated?

Past lost wages are typically easier to calculate because they deal with concrete numbers, such as your salary, wages, or other earnings before the accident. To determine the amount, your attorney will gather evidence such as:

• Pay Stubs or Salary Statements: Pay stubs are a straightforward way to demonstrate your regular earnings. If you are a salaried employee, determining past lost wages is relatively simple: calculate the daily rate based on your salary, and multiply that by the number of days you were unable to work.
• Tax Returns: Tax returns can be used to verify your annual income over previous years, especially if you’re self-employed or work on a commission basis. If your income fluctuates, tax returns provide a reliable average over a longer period.
• Employer Testimony or Documentation: Sometimes, a letter from your employer may be necessary to confirm the dates you missed work and whether you received any paid time off or sick leave that may offset the lost wages.
• Business Records (for Self-Employed Individuals): If you’re self-employed, your situation is more complicated. You’ll need to provide business records, contracts, invoices, or other documentation that can prove what you would have earned had you not been injured.

Future Lost Earning Capacity: A Complex Calculation

Future lost earning capacity is far more complex to calculate than past lost wages. It involves estimating the amount of income the injured party will likely lose due to their reduced ability to work in the future. This might be because the person cannot return to their former job, has to take a lower-paying job, or cannot work at all.

Several factors come into play when determining future lost earning capacity:

1. The Severity and Permanency of the Injury: If the injury is permanent, the lost earning capacity will typically be higher because it extends for the rest of the injured party’s working life. The more severe and disabling the injury, the greater the impact on future earnings.
2. The Plaintiff’s Age and Career Path: Younger individuals may be entitled to higher future lost earning capacity claims, as they have many more working years ahead of them. Additionally, if the plaintiff was on a clear career path with anticipated raises and promotions, those potential future earnings must be factored into the calculation.
3. Economic Projections and Inflation: Economists may need to be consulted to factor in future inflation rates, interest rates, and general economic conditions that might impact future earnings.

Types of Professionals Who Assist in Lost Wage Claims

While some lost wage claims are straightforward, others require the expertise of specialized professionals to ensure an accurate and fair calculation. Below are three key experts who may be involved in a complex personal injury case:

1. Economists: An economist may be needed to calculate the long-term financial impact of the injury. This includes determining the present value of future lost earnings, taking into account inflation, raises, promotions, and even possible interest rates. Economists provide a detailed analysis of how much money the injured party would have made throughout their career had the injury not occurred.
2. Life Care Planners: In cases where the injury is severe and long-term care is necessary, a life care planner can create a comprehensive care plan for the victim. This plan will outline the medical expenses, therapies, and other future needs, such as medical equipment, home modifications, or personal care aides. The costs associated with this care can then be incorporated into the claim for lost earning capacity, as they directly affect the plaintiff’s ability to work.
3. Vocational Rehabilitation Specialists: These experts assess the injured party’s physical and mental ability to return to work after an injury. A vocational rehabilitation specialist evaluates the plaintiff’s education, experience, and skillset and compares that to the job market. If the plaintiff cannot return to their former position, the vocational rehabilitation expert may offer an opinion on what other types of work they can do and how much they can expect to earn, factoring in their injury.

Evidence Used to Support Lost Wage Claims

To support your claim for lost wages, several types of evidence are critical:

• Medical Records: Medical records are vital to proving that your injury has directly affected your ability to work. Doctors’ notes should clearly indicate that you were unable to work due to your injury and provide a timeline for your recovery or any permanent restrictions.
• Work Attendance Records: If you missed work for doctor’s appointments, therapy sessions, or due to the injury itself, attendance records from your employer can show how many days you were out.
• Expert Testimony: In addition to vocational rehabilitation specialists and life care planners, medical professionals may also provide testimony regarding the extent of your injuries and how they impact your ability to work. Their input can help clarify the need for future treatment and whether your injury is likely to cause long-term limitations.

Conclusion

Calculating lost wages in a personal injury case requires careful documentation and, often, the assistance of experts. The process involves not only determining the wages you’ve already lost but also estimating the income you may lose in the future due to the lasting effects of your injury. At Big River Trial Attorneys in Baton Rouge, Louisiana, we understand the nuances of personal injury law and will work diligently to ensure you receive the compensation you deserve for both past and future losses.

If you or a loved one has suffered a personal injury and need help calculating your lost wage claim, contact Big River Trial Attorneys today. Our experienced team will guide you through every step of the process and fight for your rights every step of the way.