Can I Sue for Lost Wages After a Car Accident in California?
- You can sue for lost wages after a car accident in California if you were injured due to someone else’s negligence.
- Lost wages include income, benefits, bonuses, and commissions you would have earned if not for the accident.
- To calculate lost wages, use your hourly rate or daily salary multiplied by the time missed from work.
- Compensation for lost wages typically comes from the at-fault driver’s insurance, but other parties may also be responsible.
You may be entitled to sue for lost wages if you or your loved one is unable to work because a negligent driver has injured you in a car accident. Whether you are a driver, passenger, pedestrian, bicyclist, or motorcyclist, if you suffer injuries in a car accident that’s someone else’s fault, you should not have to bear the financial cost. Our experienced California car accident lawyers can determine the value of your lost wages claim and ensure you receive full compensation.
- What Are Lost Wages?
- How to Calculate Lost Wages After an Accident
- Types of Lost Wages That Can Be Reimbursed
- Evidence to Prove Lost Wages
- Who Is Responsible for Paying Lost Wages?
- How Long Does it Take to Get Lost Wages From an Accident?
- Time Limit to File for Lost Wages in California
- How Cutter Law Can Help You Recover Lost Wages
- Schedule Your Free Consultation Today
What Are Lost Wages?
Lost wages are income and benefits you likely would have received through a job were it not for the accident. They include hourly wages, salaries, commissions, bonuses, benefits, and paid time off you used because of your injuries. Our car accident lawyers in Sacramento can account for every dollar you have lost because of the accident and fight for the compensation you deserve.
How to Calculate Lost Wages After an Accident
The formula for calculating lost earnings for missed work days will vary based on how you receive your wages. If you receive an hourly wage, your lost wages are calculated by multiplying your missed work hours by your hourly wage. For example, if you earn $16 per hour and missed 80 hours, your lost wages would be calculated as follows:
- $16 X 80 = $1,280Â
If you work on a salary basis, we will divide your annual salary by the number of days you work per year to determine your daily salary. We will multiply this number by the days you missed. For example, if you missed 30 days with a $70,000 annual salary and 261 scheduled work days per year, your lost wages calculation will work as follows:
- $70,000 per year ÷ 261 work days = $268.20 daily salary
- $268.20 X 30 days = $8,046 in lost wages
These calculations only account for earnings. You may be entitled to additional damages for your missed work days depending on the benefits your employer includes in your compensation package.
Types of Lost Wages That Can Be Reimbursed
Lost wages are not limited to the money missing from your paycheck. They can also include lost future earnings, lost benefits, and performance-based pay you lost out on because you cannot perform your usual work activities.
Past Lost Wages
Past lost wages are the hourly or salaried earnings you lost because of missed time from work from the accident date until you return to work. If you have returned to work on light duty or with reduced hours and received lower pay, you can also count the difference between the wages you received and the wages you would have received were it not for the accident.
Future Lost Wages
Future lost wages are the income you will likely lose because of your injury. You may be eligible for future lost wages if your injuries leave you with a disability. You may also be eligible if you can return to work but will receive less pay.Â
Your damages will be based on your earnings at your current job before the accident. However, future lost wages are not limited to your past earnings. If there is a reasonable certainty that your earnings would have increased because of raises, promotions, and career advancements, your future lost wage calculation can include these. Your life expectancy before the accident will also factor into your future lost wages compensation.
Lost Earning Capacity
Lost earning capacity is similar to future lost wages, but with one key difference:
- Lost earning capacity is the loss of earnings you could have earned.
- Lost future earnings are the loss of earnings you likely would have earned.
Past wages can factor into your lost earning capacity, but you can recover damages for lost earning capacity even if you were not working or had never worked. For example, if you or your loved one was a minor, housewife, student, or trainee, you may have had the potential to earn wages in the future. If you or your loved one’s injuries have resulted in a loss of career options that would have been reasonably open to you were it not for the accident, you may be entitled to compensation regardless of your past work history.
Lost Benefits
Compensable job benefits include employee benefits, such as a loss of health insurance or an employer’s contributions to a 401k plan. The value of these losses now and in the future is part of your lost wages.
Lost Bonuses and Commissions
The injuries from a car accident can cause lasting pain, physical limitations, and cognitive difficulties that make it impossible to perform to the same standards as before. If you earn a commission on sales but cannot reach the same sales volume as before, you can include the missing commission in your lost wages claim. If you earned bonuses for meeting company goals before the accident but cannot do so afterward, your missing bonuses may factor into your lost wages.
Lost Overtime Pay
You may be able to recover lost overtime pay if you worked overtime and received additional compensation before the accident but can no longer do so.
Self-Employment Income Loss
If you were self-employed before the accident but can no longer perform services or operate your business because of your injuries, you may be entitled to compensation for lost business opportunities.
Sick and Vacation Time
If you used paid time off, or PTO, during any of your missed work days, you can include the monetary value of each PTO hour you lost in your lost wages calculation.
Evidence to Prove Lost Wages
You will need financial and medical evidence to prove your lost wages. For past lost wages, your financial evidence must show how much you earned before the accident, your typical work schedule, and how much time you have missed. Your evidence could include the following:
- Tax returns
- Pay stubs
- Bank statements showing direct deposits
- A letter from your employer
- Timesheets
- Work contracts or invoices if you are self-employed
You will also need proof that you cannot work. Such evidence can include your medical records and a statement from your doctor that connects the accident to your inability to work.
To prove future lost wages or lost earning potential, you must document your earning potential before the accident. You may need records showing your education, certifications, licenses, and technical training. Medical records can verify your inability to work in the future. A vocational specialist’s testimony can also verify your future inability to work.
Who Is Responsible for Paying Lost Wages?
Compensation for lost wages and other damages, such as pain and suffering and medical expenses, generally comes from the at-fault driver’s insurance policy. Other parties, such as government entities, vehicle part manufacturers, employers, and their insurance carriers, may also be responsible.
If an uninsured driver has hit you or the responsible party’s insurance coverage is insufficient to pay for all your lost wages, you can also file a claim under your uninsured or underinsured motorist policy.Â
How Long Does it Take to Get Lost Wages From an Accident?
It can take as little as a few weeks to collect your lost wages if your claim is simple, you provide all the documentation, and the insurance company takes responsibility. If your injuries are severe, it may be necessary to wait until you reach your maximum medical improvement level before your attorney can calculate your case value. This could take several months.
Unfortunately, insurance companies often act in bad faith to minimize your compensation. They may use stall tactics, make lowball offers, or blame you for the accident.Â
If an insurance company is giving you the runaround, our bad faith insurance lawyers may need to file a lawsuit to win the compensation you deserve. A lawsuit can take several months or years to resolve, particularly if your case goes to trial. California law requires personal injury cases to go to trial within five years of filing. We understand the importance of receiving your lost wages as soon as possible. Our cases often settle well ahead of the trial and this deadline.
Time Limit to File for Lost Wages in California
Under the California personal injury statute of limitations, you generally have two years to file your car accident lawsuit, but there are exceptions. It is important not to wait to contact an attorney. You could lose your right to recover lost wages if you miss the deadline. In addition, the most important evidence you need to prove liability for a car accident is often only available briefly.
How Cutter Law Can Help You Recover Lost Wages
If you or your loved one has been injured in a car accident, we can help you recover your lost wages and other damages as quickly as possible. Our knowledgeable California personal injury lawyers have over 130 years of combined experience with hundreds of millions of dollars in successful case results, including $678,000 for a pedestrian struck by a car and $596,000 for an injured motorcyclist.
We are a small, family-owned law firm that gets big results like large law firms. The difference is that we treat you like family. Our attorneys work in a collaborative environment where all of them will know your name and case. We will always go out of our way to keep you informed, and we encourage you to call us to keep us informed about your recovery process.
Schedule Your Free Consultation Today
We are ready to fight for the compensation you deserve with no upfront costs for you. We work on a contingency fee arrangement, meaning you only pay if we win. Contact us today to schedule your free consultation.
Brooks has a long-established, respected reputation as a skilled trial attorney and a record of proven success.
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