A car accident can affect nearly every part of your life. People looking at you from the outside can see the effects of your physical injuries. However, the financial damage caused by the accident is harder for others to see.
Government agencies like the National Safety Council report that car accidents cost Americans millions of dollars in lost wages and other earnings each year. For many people, missing even one or two paychecks can create financial devastation. Fortunately, the law allows injured people to recover these losses under the right conditions.
This article explains how to recover lost wages after an Alabama car accident. It also explains how a Birmingham accident injury attorney can help you and your family.
What Are Lost Wages?
“Lost wages” refers to any income lost due to your accident-related injuries. Alabama law allows injured people to recover lost wages as part of the damages in a personal injury case.
Lost wages include your hourly wages and salary. However, it can also include other types of earnings, such as:
- Overtime
- Tips
- Commissions
- Bonuses
- Holiday pay
- Weekend pay
- Hazard pay
- On-call pay
- Seasonal pay premiums
Lost wages also include any opportunities that the accident caused you to miss. This category can include:
- Raises
- Promotions
- Transfers
- Lost assignments, projects, or other opportunities
This category also includes missed contributions to your 401(k), IRA, or other retirement plan, as well as any missed employer contributions to the plan while you weren’t working.
What Are Future Lost Income and Reduced Earning Capacity?
Lost wages are primarily concerned with the earnings you lost from the date of the injury to the time of the settlement or trial. But some car accident injuries can affect your earnings far into the future. Future lost income refers to income that the accident will cause you to lose even after the settlement or trial. Similarly, some people may be able to return to work, but not at the same position or level. These claims are covered by reduced earning capacity. The last two categories often, but not always, overlap.
Here’s how they work: A warehouse worker’s leg is injured in an accident. She misses six months of work.
- Scenario #1 – The worker makes a full recovery and is able to return to her original position. Here, she can still raise a claim for the wages she missed during the six-month recovery period.
- Scenario #2 – The worker doesn’t make a full recovery, but the company offers her a lower-paying office position. Here, she can raise not only the lost wage claim but also a reduced earning capacity claim for the difference in wages between her original warehouse job and the new position. This could also be a future lost income claim.
Can PTO or Sick Leave Be Part of a Lost Wage Claim?
Yes. Many people rely on benefits such as PTO (paid time off), vacation, and sick leave to help them maintain their income after a serious car accident injury. While you were paid, those banked hours were valuable and took time to earn. As such, you can add them to your lost earnings claim.
What Evidence Do You Need to Prove Lost Wages?
If you say that the accident caused you to lose income, the other driver’s insurance company isn’t going to take your word for it. You’ll have to give them proof. Your medical records will show your injuries, as well as any work restrictions. But you’ll still need income-specific evidence to prove your wage losses. Helpful pieces of evidence include:
- Pay stubs
- Direct deposit records
- W-2s
- 1099s
- Tax returns
- Scheduling records
- Proof that you used PTO, vacation, or sick leave
What If You Are Self-Employed, an Independent Contractor, or a Gig Worker?
Self-employed people, independent contractors, and gig workers can also claim lost income after a car accident. However, because these incomes can fluctuate and there isn’t a traditional employer who can confirm missed time, you’ll have to provide more information to support your claim.
The same types of proof listed above should be useful. However, you’ll also need to provide supporting documentation such as:
- Bank or digital app transaction statements
- Invoices
- Contracts
- Business or personal tax returns that show lost earnings
- Business calendars
Pay particular attention to any evidence that shows the accident caused you to lose clients, contracts, or other economic opportunities. Texts, emails, calendars, and other documents might be helpful.
How Can an Alabama Car Accident Lawyer Help You with a Lost Wage Claim?
Losing your main source of income can affect you in countless ways. Fortunately, a lost wage claim can help you recover what was lost. A Birmingham car accident lawyer can help you with a lost wage claim by:
- Collecting and compiling your medical and financial records
- Helping you provide proof of self-employment income
- Considering whether you have a claim for future lost income or reduced earnings capacity
- Identifying and hiring experts to support your wage claims
- Talking to insurance companies on your behalf
If you were hurt in an Alabama car accident and have past or future lost income because of your injuries, contact Collins Law, LLC. Our clients praise us for our compassion, clear communication, and results. Schedule a free, no-obligation consultation today by calling 205-588-1411 or using our online contact form.
