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Summary
To claim lost wages in Nevada, you must provide documentation of all wage loss through pay stubs, an employer-lost wages letter, and medical records, and then file a claim with the at-fault party's insurance company.
Table of Contents
What Are Lost Wages in a Personal Injury Claim
In a Nevada personal injury case, lost wages refer to the actual income lost by a person due to injuries sustained in an accident, such as a car accident or slip and fall.
In lost wages claims, you can claim various types of employment income, including:
- Regular Pay: You can seek compensation for the normal income, such as hourly wages, salaries, and commissions you would have earned if the accident had not occurred.
- Overtime Hours: If you can prove that you regularly work overtime, you can claim lost income for the overtime loss.
- Lost Bonuses: Any bonus pay you lose out on due to your injuries can be compensated for in a lost wages claim.
- Sick Leave and Vacation Time: If the accident forces you to use sick or vacation days, you can seek reimbursement for the losses.
- Self-Employed Wages: Wages made through being self-employed can be considered lost earnings and compensated for in a personal injury lawsuit.
Recovering lost wages is crucial to mitigating economic losses for accident victims.
To ensure a fair recovery, it's recommended that you contact an experienced personal injury lawyer, such as Las Vegas Car Accident Attorney Rodney Okano, who has over twenty-plus years of experience in personal injury law.
To contact Personal Injury Lawyer Rodney Okano, call (702) 566-3600 for a free consultation.
How to Claim Lost Wages
Successfully claiming and proving lost wages in a personal injury case is crucial to obtaining financial stability after an accident, such as a car accident.
Document All Wage Loss
To support your claim of lost earnings, you must provide substantial evidence of the lost income.
Key documents needed to prove lost income include:
- Pay Stub and Tax Returns: Paystubs, tax returns, and bank statements can all be used to prove how much you were receiving in your regular paycheck and help calculate how much compensation you're entitled to.
- Employer Lost Wages Letter: A letter from your current employment outlining your position, salary, work hours, employment records, and the time you missed work because of your injury can help in recovering lost income.
- Medical Records: Medical documentation from your doctor or healthcare provider and medical bills can help confirm your injury and help the insurance company understand the necessity of taking time off from work.
- Timesheets: If you have records outlining your work history and the exact days and hours you missed, you can use them in a lost wage claim.
Seek Legal Help from Las Vegas Personal Injury Lawyers
Obtaining help from experienced personal injury attorneys, such as those at The Rodney Okano Car Accident Lawyer Law Firm, can make proving lost income and future earnings extremely simple.
An experienced attorney can organize evidence, handle negotiations with insurance companies, and ensure fair compensation.
If you wish to have an experienced personal injury attorney handle your lost wage claim, call (702) 566-3600 to schedule a free consultation.
File an Insurance Claim with the At-Fault Party’s Insurer
With the backing of a legal team, you'll file a lost income claim with the at-fault party's insurance company.
When filing a claim with the at-fault party's insurer, you'll typically include documents such as:
- A demand letter that outlines your injuries, missed work days, and salary.
- Copies of financial and medical documents which will be used as evidence.
How to Calculate a Lost Wages Claim
Correctly calculating lost wages is vital to obtaining maximum compensation in your personal injury claim.
Whether you are a salaried employee, hourly worker, or self-employed, we cover how to calculate your lost earnings.
How to Calculate Lost Wages If You’re an Hourly Employee
If your employment income is based on an hourly wage, you can calculate your lost pay by multiplying your hourly rate by the hours missed.
- Example: If you earn $20 per hour and miss 100 hours of work due to injuries, your lost wages would be $20 × 100 = $2,000.
How to Calculate Lost Income If You’re a Salaried Employee
Employed people whose income is based on a fixed salary can calculate their lost wages by dividing the annual salary by workdays (260) and multiplying it by the days missed.
- Example: If your salary is $70,000 and you missed 30 days because of injuries, your lost income would be ($70,000 ÷ 260) × 30 = $8,077.
How to Calculate Lost Revenue If You’re Self-Employed
If you are self-employed, you can use income records, tax filings, and other profit and loss statements along with the formula (average weekly ÷ monthly income) × days missed to determine the lost revenue.
How Can I Prove Lost Wages If I’m Self-Employed
Proving lost wages and lost earning capacity if you are self-employed can be a more complex endure when compared with traditional employees.
However, with the right approach and support from an attorney, you can be fairly compensated for your losses.
Gather Financial Evidence
To recover lost wages while being self-employed, you should collect the following records:
- Tax Returns: The tax returns from the last two to three years, including IRS Form 1040 with Schedule C, can help provide an insight into your business's average earnings.
- Contracts: Ongoing contracts with clients can help prove lost future earnings if the work you were expected to complete for them was disrupted by the accident.
- Invoices and Bank Records: Bank records, invoices, and billing statements can provide a breakdown of money being spent and earned in your business, which will help quantity lost wages in a personal injury claim.
Get a Financial Statement from a Certified Public Accountant
Request that a certified public accountant (CPA) or financial expert conduct an assessment of your earnings and losses and provide you with a financial report.
This professional report can provide expert opinions on your lost income based on trends and average earnings.
Consider Help from a Nevada Car Accident Attorney
Proving lost wages as a self-employed person can be significantly more difficult, so it's highly recommended that you contact a Las Vegas personal injury lawyer who has experience helping self-employed accident victims with lost wages.
Can Lost Wages Be Taxed
In Nevada, lost wages cannot be taxed as there is no state income tax in Nevada.
However, lost wages may be taxable under federal law if the compensation received for the lost wages stemmed from non-physical injuries, breach of contract, or previously deducted medical expenses.
Lost Wages vs. Loss of Earning Capacity
In a personal injury case, it's crucial that you understand the difference between lost wages and loss of earning capacity, as each is distinctly different and important.
Lost Wages
Lost wages refer to the past income you have missed due to your inability to work because of a serious injury.
Lost wages include:
- Regular salary
- Lost perks
- Sick, vacation, or personal days used because of the injury
- Bonuses and commissions
Loss of Earning Capacity
Lost earning capacity refers to the loss of the ability to earn future income, potentially due to permanent or long-term injuries.
Additionally, it can also refer to the diminished earning capacity you may experience if you can return to work but cannot operate at your past potential.
Lost earning capacity usually includes:
- Inability to return to your job
- Reduced work hours or demotion
- Missed promotions or career advancement opportunities
Obtain the Compensation You're Entitled To
Contact Us Today
Rodney Okano Car Accident Lawyer is a Las Vegas personal injury law firm with over 20 years of experience helping clients obtain maximum compensation following injuries from accidents such as car crashes, worksite injuries, and slips and falls. Over those years, The Rodney Okano Car Accident Lawyer Law Firm has become an experienced law firm that can ensure exceptional results for any of its clients.
