What lost wages include
Lost wages cover the pay you missed because of the injury: days off work, reduced hours, lost overtime and tips, missed bonuses, and paid leave you had to use. If the injury limits what you can earn in the future, that loss of earning capacity is claimed separately.
How to document them
- Pay stubs from before and after the injury
- A letter from your employer showing dates missed and your rate of pay
- Doctor’s notes taking you off work or limiting duties
- For the self-employed: tax returns, invoices, bank statements and lost contracts
Self-employed claims
Without a paycheck, the loss is shown by comparing earnings before and after the injury. Net profit from tax returns is the usual starting point. Lost clients or contracts, and the cost of hiring help to cover your work, can be claimed too.
Future earnings
When an injury is permanent, an economist or vocational expert may project the difference between what you would have earned and what you can earn now, over the rest of your working life. The calculator multiplies a yearly loss by the number of years for a quick figure; experts discount it to present value.
Questions people ask
Can I claim lost wages if I used sick days?
Yes. Paid leave you were forced to use is a real loss, because you no longer have it for later.
Are lost wages in an injury settlement taxable?
Not when they are part of a physical injury settlement. Back pay in an employment claim is taxable.