When it comes to car accidents, the biggest concerns many victims express are for the financial repercussions. The income and wages you will lose will always be at the back of your mind, leaving you stressed and preventing you from truly focusing on your recovery. While there are ways for us to recover these losses, you might wonder, how exactly are lost wages calculated, and what do you need to show to receive a favorable outcome? At Gabriel Law, we believe that everyone deserves to receive a fair settlement, and in this blog, we take the spot of your accident injury attorney in Queens and help you understand how lost wages are calculated after a car accident in New York.
What documents do we need to calculate lost wages?
When it comes to claiming lost wages, the operative word here is ‘lost.’ You need to show that due to the car accident, you have now lost the ability to receive the wages you would have received had it not been for the accident. Since insurance providers are not inclined to believe your words alone, providing the relevant documentation is a must. Some of the documentation you might be required to show may include:
- Pay stubs and tax records
- Contract of employment
- Written confirmation from your employer confirming the payment rate
- Timesheets, schedules, and work logs indicating your work hours.
Calculating lost wages: Hourly rate vs. salary
When calculating lost wages, how we calculate your lost wages depends on how you earn your wages. As such, the calculation for someone earning an hourly wage is different compared to someone earning a salary.
Hourly Rate
If you are someone in the food service industry or a construction worker, you would most likely receive your wage at an hourly rate. For such an individual, the lost wages are calculated by multiplying the hourly rate by the number of work hours you’ve missed. Other earnings such as overtime and tips can also be factored in as well.
Salary
When we calculate lost wages for salaried employees, we first take a look at your annual earnings and establish a daily rate. Afterward, we multiply your daily earnings by the number of workdays you have missed due to the accident.
Are lost benefits and future earnings included in the calculations?
Yes, both lost benefits and future earnings are considered when awarding compensation for your car accident injuries. Lost benefits, as the name suggests, refers to any benefits you would have lost that were given to you as an employee. These include:
- Contributions to health insurance
- Retirement plans such as 401(k)
- Paid vacation and sick leave
- Bonuses and commissions
Alternatively, if the car accident kept you away from work for a long time, you can claim compensation for future earnings. You can present a compelling case for future earnings if:
- You are prevented from working at your previous job.
- You can work, but in a limited capacity or not at the same level of pay.
- The accident has caused you to suffer long-term or permanent disability.
Calculating lost wages for self-employed individuals
Self-employed individuals can also claim compensation for lost wages. However, proving earnings in freelance work can be quite difficult, especially if you are taking cash payments “under the table,” so to speak. If you are claiming compensation, you will need the proper documentation, and that can include the following:
- 1099 tax statements
- Bank statements
- Business contracts and invoices
- Letters of verification
- Medical records
Through these documents, the goal is to establish a consistent pattern of work and to show that the injuries you suffered prevented you from providing your freelance services. If successful, you can even claim compensation for the loss of future contracts, business opportunities, and goodwill.
How do disability benefits influence the claim for lost wages?
As an employee, you can be eligible for disability insurance benefits either through your employer, a private policy, or the New York State disability insurance program. Typically, the disability benefits would cover around 50-60% of your lost wages, but it does not prevent you from pursuing a claim for lost wages via no-fault insurance. In the scenario where you have obtained disability benefits, your insurance settlement will be adjusted accordingly.
Conclusion
When you’ve been injured in a car accident in New York, you have every right to claim fair compensation. Therefore, to prevent lost wages from becoming an overwhelming financial burden on you and your family, contacting an experienced and qualified injury attorney in Queens is a must.
At Gabriel Law, your victory is personal to us. As a personal injury law firm in NYC, our team is fully qualified and prepared to help you fight the good fight and claim the compensation you richly deserve. Get in touch with us to schedule a free consultation and set on the path to a secure financial future.
