7 Things to Include in a Lost Income Claim

An accident can lead to enormous losses in the form of missed income. Since the defendant should compensate all your economic losses, you should include all forms of lost earnings in your demand letter. Otherwise, you might not get the entire compensation you deserve.

Below are seven things that you should not leave out of your lost income calculations.

1. Missed Overtime

Many employers pay their employees extra for overtime work. If you are such an employee, include your overtime work and pay. Work history with regular overtime hours can help you prove your claim. You can also use a letter from your employer or supervisor detailing the overtime schedule you missed.

2. Missed Wage Increases

If your employer promotes their employees during your absence, don't use your old salary in your calculations. You just need to prove that you would have benefited from the increase if you had worked.

Consider a case where you earn $1,000 per week, and you missed four weeks of work due to your injury. However, everyone in your company received a 10 percent increase at the beginning of the third week. In such a case, your calculations should include $1,000 per week for the first two weeks and $1,100 per week for the remaining two weeks.

3. Missed Sales Commissions

Most salespersons have basic salaries as well as commissions on sales. Employers use the commissions to motivate their employees and increase sales. For example, an employer might pay 10 percent commissions on every sale above a certain threshold.

In such a case, your lost wages should include the commissions you would have earned but did not earn because of your injury. You can use documentary evidence of your past performance and earned commissions as evidence.

4. Missed Bonus Payments 

Profitable businesses tend to reward their employees with bonuses, usually at the end of the financial year. Just like commissions, employers use bonuses to reward and motivate employees. Unfortunately, an injury might keep you away from work and interfere with your benefit payments. If you can prove the missed bonus, you deserve to include it in your compensation.

5. Missed Pay Difference

Many employees who return to work after an injury start by working reduced hours because working your preinjury hours might interfere with your recovery plan. Your employer might also pay you proportionally to your working hours, which means reduced pay. In such a case, you should include the difference between your preinjury and post-injury pay in your damages.

6. Missed Fringe Benefits

Some employers give their employees benefits that go beyond the usual financial compensations. Many people refer to such benefits as fringe benefits. Examples of fringe benefits include:

• Contributions to retirement accounts
• Contributions to health insurance
• Tuition reimbursement
• Access to or discounts at fitness centers

Include the fringe benefits in your demand, just like other employment benefits.

7. Missed Promotion Opportunities

In most cases, a promotion leads to increased pay and benefits. Unfortunately, a serious injury can deny you a promotion opportunity, and with it, the increased pay and benefits.

Consider an example where your employer is considering you for a promotion to head a new branch. Unfortunately, you suffer serious injuries a few days before you can formalize the promotion. Your employer then decides to go for another candidate since you can't manage the new job with your injury. In such a case, the injury has denied you a promotion.

An experienced lawyer can help you prove and negotiate your settlement. Wegner & Associates has over 40 years' experience in personal injury law. Contact us to evaluate your case and determine how best to pursue your settlement. We will do everything possible, including litigation, to ensure you get the compensation you deserve.