Auto Accident Claims and Lost Wages

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If you’ve been in an car accident where somebody else was at fault, and you've had to miss work as a result -- or you've missed out on other income opportunities because of your injuries and resulting limitations -- you might be wondering if (and how) you can recover for these kinds of losses in a car accident lawsuit. This article discusses general considerations for recovering lost wages in motor vehicle cases and what you will need to prove to recover yours.

Lost Wages is a Common Component of Car Accident Lawsuit Damages

If you were involved in a car accident and you are suing the other person responsible (the “defendant”), you (the “plaintiff”) are allowed to recover any lost wages that resulted from the accident.

The most obvious example is when a physical injury, like a broken leg, prevents you from doing your job. In that case, you are entitled to recover the wages you would have received had your leg not been broken and you were still able to work. If you couldn’t work for two months, then you are entitled to recover the amount you would have normally been paid during those two months. Other debilitating and disabling car accident injuries -- including psychological injuries caused by the accident, like PTSD -- are another grounds for recovering lost wages, if they are severe enough.

Payment for “Lost Earning Capacity” Is Another Type of Damages

If a motor vehicle accident causes a permanent or long-lasting disability that affects your ability to earn money for an indefinite time into the future, then you may be able to recover damages for “lost earning capacity.”

Even if you can still work, you can recover if the disability prevents you from having a higher paying job than you likely would have had if not for the disability. Keep in mind that chronic pain and general loss of stamina and endurance qualify as disabling injuries.

Aggravation of a Pre-Existing Injury Counts

To recover for lost wages and/or lost earning capacity, the auto accident must be the direct cause of the injury that prevented you from working. However, that does not mean that pre-existing injuries don’t count.

If the accident made a pre-existing injury worse so that now you cannot work or work as well as you could before the accident, you can still recover the full amount of your lost wages and/or earning capacity.

You Need to Give Reasonably Certain Proof of Your Wages or Lost Earning Capacity

To prove lost wages, the easiest way is to submit your most recent paycheck before the injury as evidence. If you are self-employed, you’ll need to submit proof of what you normally would have earned, for example invoices from the same period during the previous year. You can also recover for lost tips and other non-salary benefits if you have decent proof. (More: Checklist of Records to Gather After a Car Accident.)

It is a little more tricky to prove lost earning capacity, since some speculation about the future is necessary. Depending on your line of work and the type and severity of the injury, the fact that you will have a diminished earning capacity can often times be assumed (i.e. you only have to prove the injury, not what will happen because of it).

The harder part is proving how much you should recover. Comparing paychecks before and after the injury is the easiest way to prove the extent of lost earning capacity, but it is often not that simple.

Usually, some type of financial or economic expert witness will be necessary to figure out a ballpark number for what you would have earned were it not the disabling injury, minus what you will likely earn given the disability. Evidence (usually testimony) about your character traits and work habits, education and intentions to change careers can also be factored in. Matters can be made more complicated if your disability is unlikely to be permanent and a best guess is needed about how long it will last.

For all these reasons and more, often the biggest litigation battle after a car accident involving a serious injury is not who was at fault, but what the damages are. If the case actually goes to trial, the jury has a lot of leeway to choose how much should be awarded -- they are allowed to use their “common sense” to pick a number, even if the proof is vague and speculative (as long as it isn’t too vague and speculative).

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