Have you ever wondered what might happen if you had a personal injury resulting in medical consequences leading to the inability to carry out working duties and financial hardship?
Understanding the process of calculating lost wages and submitting a claim is vital to securing compensation for missed work hours, regardless of your industry or job role.
What Are Lost Wages?
Lost wages refer to the income an employee misses because of an injury, illness, or other conditions that restrict their ability to work. For example, being involved in a car accident and missing work will result in lost wages. The condition can include the days missed following the incident, days of absence for medical care, and additional days off for recovery.
The Oregon personal injury laws regulate the estimation and addressing of lost wages, guaranteeing fair compensation for lost income to individuals experiencing employment disruptions.
What’s Covered Under Lost Wages in Personal Injury Cases?
In personal injury cases, compensation for lost wages covers the overall financial impact of the injury on the employee’s working and earning capacities.
Here is what’s covered under lost wages in personal injury cases:
Regular Income and Salary
Regular income and salary is the amount an employee earns from employment, including salaries of full-time employees, part-time employees, hourly-paid full-time employees, contract workers, and occasional or seasonal workers.
In personal injuries, the wages mentioned can be considered lost if the injury prevents the employee from performing work duties. Suppose an employee has a broken leg in a car accident and cannot fulfill work duties. In that case, a lost wage settlement will help them receive the salary they would have received if they had been working as usual for that period.
Bonuses and Tips
Bonuses and tips can also be claimed as part of lost wages. Bonuses include any form of incentive pay, including seasonal and performance bonuses. For example, if an employee has missed work due to a personal injury in a period when they would have earned a seasonal bonus, the lost income can be included in the lost wages claim.
Tips can also be included in lost wages for employees in service industries like hotels and restaurants. For instance, if a restaurant employee has missed work due to an injury, the tip they would have received is included in the lost wage claim.
Benefits and Perks
Benefits and perks, which may include health insurance, stock options, and similar, provided by the employer, can also be included in lost wages as an additional form of compensation that employees receive as part of their employment.
In case of a personal injury causing an employee to miss work, they can factor benefits and perks into the lost wages claim. For example, if an employee has had to miss several months of work, losing the health insurance coverage, this can be added to the claim.
Paid Leave and Vacation Time
Paid leave and vacation time are considered part of lost wages once the injured employee uses them for recovery. Normally, employees arrange these days for planned vacations or personal holidays. For example, if an employee uses the accumulated sick days and vacation time for recovery, this is considered a lost paid leave with financial loss. So, lost wage compensation can be sought.
Key Documentation for Lost Wages
Lost wages caused by personal injuries can be compensated for all types of personal injury cases. However, in all personal injury claims, the legal burden of proof lies with the claimant.
The claimant can only demand a lost wages settlement by submitting proof of lost earnings and earning capacity due to an accident.
Below are some key documents that can help prove the lost wages.
Documents Showing You Could Not Work
Medical documentation, including medical reports and doctor’s notes, is the first step in proving that an accident caused the personal injuries. Immediately after the accident, it is vital to seek medical attention, even if the injuries appear minor.
Medical documentation should cover the extent of the injury, the required treatment, and the estimated recovery period. These documents are important not only for claiming lost wages but also for personal injury settlement in accidents.
Pay Stubs
A paystub, or pay statement, provides evidence of an employee’s regular earnings before the injury. This document details income from salary, commission, or hourly wages, listing tax withheld, insurance and retirement deductions, and similar information.
Providing several months of pay stubs helps clearly portray earnings for wage recovery in personal injury.
Letter from Employer
A letter from the employer is the official record that confirms employment, outlines the missed working days, and specifies the amount of overtime lost.
Before submitting the lost wages claim, requesting a letter from the employer specifying the details required for the claim is essential. The letter should be presented in the original, signed form.
Post-Accident Journal
A post-accident journal provides a detailed record of how an injury has impacted the employee’s work potential and earning capabilities.
It is important to note all the days of missed work and the required medical treatment in the journal. A precise and honest account supports claimants’ ability to demonstrate the economic damages along with noneconomic ones, such as pain and suffering, impacted by the injury.
How to Calculate Lost Wages
Lost wages are calculated based on the employment status. Specific calculation methods exist for full-time employees, hourly workers, contractors, etc. Unique factors should be considered when calculating lost wages for each category of workers.
- Full-Time Employees: Find out the daily wage by dividing the employee’s annual salary by the number of working days for the year (260 days for a typical 5-day workweek). Next, calculate the total amount by multiplying the daily wage by the number of working days the employee missed due to a personal injury.
- Hourly Workers: Multiply their hourly wage by the hours they would have worked during recovery.
- Contractors and Freelancers: Use an average of past earnings as this category of workers doesn’t have a fixed income. Tax returns, invoices, or statements can help calculate the typical income of contractors and freelancers.
Lost Wages vs. Lost Earnings
Lost wages cover an employee’s income loss while recovering from an injury. In contrast, lost earnings (or lost earning capacity) refer to a potential long-term reduction of future income once the injury impacts the employee’s ability to work in the future or forces a shift to a less-paying and lower-demanded position.
Lost wages and earnings help ensure the claimants receive fair compensation in personal injury cases.
Statute of Limitations for Lost Wage Claims
The statute of limitations for lost wage claims is a strict time frame within which an employee who has experienced lost wages can file a claim for compensation.
The general statute of limitation is six years in the U.S. In the State of Oregon, victim-employees are limited to two years from the date of injury to file a claim with the Wage and Hour Division of the Oregon Bureau of Labor and Industries.
Consulting with Portland personal injury attorneys is important to act promptly and not miss the deadline to file a lost wage claim in personal injury cases.
The Importance of Lost Wage Claims
Filing a lost wage claim allows employees to recover unpaid wages or other essential income lost in a personal injury. Such claims can also impact employees’ future working potential. However, a lack of knowledge of lost wage settlement procedures can lead to significant financial and non-financial losses for employees.
If you have had a personal injury and need legal guidance, contact our skilled personal injury attorneys to ensure your lost wage claim is addressed and adequately calculated so you can focus on the recovery.
