What Are Lost Wages?
You might need some time to heal after your injury, regardless of whether you were hurt in a car accident, a slip and fall incident, or any other kind of personal injury accident. That might entail receiving medical attention while you recover in the hospital, having surgery, or simply taking it easy at home.
Spending all that time away from work could cost you money. Even if you use vacation or sick time, you could still have done other things with that time if the accident hadn’t happened.
How is the Amount of Lost Wages Calculated?
The calculation of lost wages is typically simple. Any money you would have made if you had been working is included. For many people, calculating your damages simply entails adding up the hours you missed and multiplying that total by your hourly wage.
Your lost wage calculation becomes more difficult if you receive bonuses or commissions. You will probably need to estimate the amount of money you would have earned while you were off the job. The most popular method for accomplishing this is by averaging your commissions and bonuses. To calculate how much you would have made while you were off work, divide that average by the day, week, month, or year.
If you are on salary and your wages did not stop while you were hurt, you may not be able to recover lost wages (unless you missed so much and were required to take unpaid days). Your lawyer will be able to evaluate your case and advise you on whether or not you are eligible to receive compensation for lost wages as part of your claim.
What Exactly is the Difference Between Lost Wages and a Loss in One's Earning Capacity?
Damages for personal injuries can also include compensation for a victim’s diminished capacity to earn a living. One of these types of damages is something that has already taken place, while the other is an estimate of losses that will take place in the future. This is the primary distinction between the two.
The concept of loss of earning capacity refers to the effort that is made to compensate you for the diminished ability that you will have in the future to be employed. It is not necessarily tied to a loss of hours, but you will be compensated for your reduced ability to earn a living as a result.
Imagine that you were working as a mechanic before you were involved in a car accident that caused you to suffer a back injury. Because of the accident, you are now less able to perform your job as a mechanic. If this is the case, then you ought to be compensated for the losses that are associated with the fact that you won’t be able to perform that specific work in the foreseeable future.
In many cases, you are entitled to compensation for both lost wages and loss of earning capacity. Your best chance at receiving maximum compensation for your losses is to hire a personal injury attorney to help with your case.
Getting compensation for your lost wages is not always easy. The insurance company will do what it can to try and minimize your injuries so it can pay you the lowest possible amount. With the help of an accident attorney, this is not likely to happen.
Contact The Brown Firm to schedule a free consultation if you were involved in an accident that wasn’t your fault.
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