How Lost Wages and Income Are Valued in Personal Injury Claims

## Lost Wages: A Critical Component of Your Settlement

When an injury prevents you from working, the income you lose is fully recoverable in a personal injury claim. Lost wages include not only the days you physically missed work but also vacation days used for recovery, sick leave exhausted due to treatment, and any reduced hours you worked while healing. This economic damage is calculated with precision and must be thoroughly documented to withstand scrutiny from insurance defense teams.

Workers who suffer injuries resulting in more than 30 days of missed work receive settlement awards that are on average 3.5 times higher than those with shorter recovery periods.

Calculating Past and Future Lost Earnings

Past lost wages are calculated using your regular hourly rate or salary, multiplied by the number of days or hours missed. For self-employed individuals and gig workers, tax returns and invoices are used to establish average income. Future lost earnings — also called "loss of earning capacity" — are more complex and require economic expert testimony when injuries permanently affect your ability to perform your job.

Obtain a letter from your employer confirming your salary, missed dates, and position
Collect pay stubs from the three months before the injury to establish baseline income
Have your doctor document work restrictions that impact your employment

When Loss of Earning Capacity Changes Everything

If your injury prevents you from returning to your previous occupation permanently or forces a career change to lower-paying work, you may be entitled to compensation for the lifetime income gap. An economic expert will calculate present-day value of future lost earnings based on your age, career trajectory, and injury prognosis. This single element can add hundreds of thousands of dollars to your settlement in serious cases.

Document every work restriction your doctor imposes — these records are the direct evidence linking your injury to your income loss.