Lost wages refer to the amount of income you were unable to earn because of your injury. If you were involved in a car accident and had to miss work, they are considered lost wages. The loss of wages is not the same as the potential loss of income. Lost wages analyze the amount of wages you actually lost because of the accident. As a Personal Injury Attorney in Charleston SC, I can help you recover these lost wages. The potential for loss of income analyzes the work you could lose in the future.
Lost wages are the money you would have earned if you hadn't been injured in an accident and had to miss work while recovering. It includes all the money you would have earned, such as your salary, tips, paid vacation, and other benefits. It helps make up for money you lost while you were in the hospital, receiving treatment, or unable to work. Lost wages refer to income you have already lost due to your inability to work after the accident. Conversely, loss of earning capacity refers to potential future earnings lost due to lasting injuries or disabilities caused by the accident.
The loss of wages is vital in determining the value of any lawsuit that causes the loss of compensation, such as a personal injury case. Forensic experts must consider a variety of variables when calculating lost wages. These variables create complex situations, often requiring the help of forensic economists. The Knowles Group is one of the country's leading litigation economics consulting firms.
Our firm accurately calculates economic damages and provides expert witness testimony for plaintiffs and defendants. Lost wages refer to the compensation that a claimant does not receive when they are unable to work due to the incident. in question. In personal injury and medical malpractice cases, the plaintiff may have the right to pursue lost income due to injuries and ongoing medical treatment.
In wrongful termination lawsuits, the plaintiff may have the right to pursue the profits he would have earned if it weren't for being wrongfully fired. The value of the plaintiff's loss of income will take into account factors such as regular wage (hourly or wage), potential overtime, lost earning opportunities (raises, bonuses, and commissions), health benefits, retirement contributions, and more. When the court awards compensation for lost wages, its payment is the responsibility of the defendant or their insurance company, in addition to money spent on other damages, such as medical expenses. Lost Wages = (Annual Income Prior to the Incident) x (Part of the Lost Year (s)) + (Additional Factors) However, calculating lost wages becomes more complicated if the plaintiff is self-employed.
Similarly, situations that result in extended periods and an indefinite loss of income are more complex. For this reason, it's best to work with a personal injury attorney and a skilled forensic economist to determine fair and accurate calculations. The plaintiff's legal team considers several factors when determining total lost wages. However, not all factors are guaranteed to be respected.
An experienced attorney will ensure that your lawsuits include any factors that may have affected the client's income. Then, they must provide documentation showing the loss of income as proof. These documents include income tax returns, payroll records, L&I records, medical records, doctor's notes, and more. Regular wages include time lost due to the plaintiff's claim.
These regular wage figures apply to salaried and hourly employees. Hourly wages are calculated by multiplying the total hours lost by the hourly wage. In the case of salaried employees, the time lost is multiplied by plaintiff's annual salary. Overtime compensation includes any overtime outside the plaintiff's regular business hours.
In legal agreements, the court considers overtime to be an opportunity, not a right, meaning that a forensic expert will only consider overtime when calculating lost wages if the plaintiff works overtime consistently and has the pay stubs to prove it. Since Mike is a salaried employee and rarely works overtime, his lawyer does not advocate overtime pay in his settlement lawsuits. A forensic expert can also include bonus payments in a claim for lost wages. The plaintiff will be responsible for demonstrating their right to payment of bonuses by demonstrating that bonuses are an “integral part” of their compensation.
They must provide documentation about previous bonuses or a report from their employer that details how they include the bonuses in the compensation plan. Mike has been working with his company for the past ten years. You have paid an annual bonus based on total sales for that year. An average of your previous bonus payments multiplied by a year and a half will determine your missed bonus payment. Keep in mind that bonuses may have been decreasing or increasing in the recent past.
During the time away from work, the plaintiff may not contribute to a 401k or similar retirement plan. They may also lose their employer's healthcare offer because of wasted time. at work. The plaintiff may have out-of-pocket medical expenses or out-of-pocket health insurance premiums.
A forensic expert must take these contributions into account in the final calculations of lost wages. Mike's employer matches his 15% contribution for $401,000. Therefore, your lawyer includes the employer's contribution in your settlement demands. Other benefits, such as a company phone, a vehicle, gym membership, etc.
Suppose a plaintiff loses benefits such as a company phone or vehicle due to an extended absence. In that case, the plaintiff can claim any additional expenses they have incurred. Mike's employer provided him with a company car while he was working. After the accident, the car was wrecked.
Since he did not return to work, the company did not provide him with a new car. Instead, he had to buy a used car. For self-employed people, lost wage calculations are more complicated. The plaintiff must have been in business for a reasonable period. The plaintiff will find it difficult to collect lost wages because they don't have a documented financial history, so any claim about future earnings is purely speculative and it's easy to argue against them.
On the contrary, established companies will have the necessary records to claim lost wages. The Knowles Group calculates business damages using Annex C or 1120S statements and other business records for project future revenues. We then consider these projections to demonstrate the loss of revenue and the future loss of earning capacity. Any legal case that causes a plaintiff to lose their ability to generate income will require calculating lost wages, including personal injury and accident claims, medical malpractice lawsuits, dental negligence, labor and other areas of practice.
The nuances and details of the legal claim process create many factors to consider. When it comes to lost wages, plaintiffs and defendants must consider factors such as loss of earning capacity or potential, additional benefits, sources of guarantee, and more to build the strongest case possible. This range of factors makes you work with a trained economic expert who understands the implications and can determine the full extent of financial damages and losses. As one of the leading economic consulting firms in the United States, The Knowles Group has determined the calculations and provided expert testimony in several state and federal courts across the country in several legal cases for plaintiffs and defendants.
To recover lost wages and loss of ability to earn money, you or your lawyer must show that you had lost income before the lawsuit and that you will lose income after the lawsuit. While lost wages are likely to be easier to calculate based on doctors' history and projected expectations, the loss of earning capacity is expected to affect the victim in the long term. In addition, if losing your job means you don't earn enough work credits to qualify for unemployment, you can include the loss of unemployment as part of your claim for lost wages. In Texas, it's crucial to distinguish between “lost wages” and “loss of earning capacity,” as these are two different types of damages that can arise in personal injury claims. The best way to ensure that you can prove all the damages in your injury case, including lost wages, is to partner with a Las Vegas personal injury attorney.
Loss of earning capacity can also refer to the difference between what the victim earned before the injury and what they can earn now, considering their new level of ability. An experienced work injury attorney can help you negotiate maximum financial compensation for lost wages and loss of ability to win. They can easily explain what their lost wages are by writing a letter or providing additional documentation for validation. They may be able to recover the full amount of their lost wage for the number of years they would have been able to work. Many injury victims simply omit lost wages in their claims because of the specific difficulties involved in proving them.
Working with a personal injury attorney can be an excellent decision after an incident that results in lost wages, loss of earning capacity, and other losses. For example, if you lose ten days of work, multiply the number of hours you work each day by your hourly rate and, finally, by the number ten times ten days of work lost. You may need to call on a forensic accountant to explain how to arrive at your claim for potential loss of income.