Losing your income after a car accident can be stressful, especially if your injuries keep you out of work for weeks or even months. Whether you’re missing paychecks or were fired because you couldn’t return to your job, you may be able to recover lost wages through an insurance claim or lawsuit—and here’s how.
Lost wages are the income you couldn’t earn because of an accident. Think about the regular paycheck you missed, overtime opportunities that disappeared, or even bonuses that slipped away. It’s like watching your hard work float out the window while you’re stuck on the couch.
But wait, there’s more. We’re not just talking about the income you’ve already lost. If your injuries are serious enough to affect your future earning potential—say, you can’t return to your old job—you can also claim what’s called “lost earning capacity.” According to California Civil Code Section 3333.2, economic losses like these are entirely fair game when seeking compensation.
Proving lost wages isn’t about guesswork; it’s about solid evidence. The more you can show, the stronger your case. Here’s your roadmap:
Think of pay stubs as your financial receipts. They show your earnings before the accident—hourly wages, bonuses, overtime, and all. Employment records can add details about your job responsibilities and hours worked.
Ask your employer to provide a letter verifying your employment, your pay rate, your typical work hours, and the time you’ve missed due to the accident. This letter can serve as powerful evidence when filing your claim.
Here’s where your doctor becomes your ally. Medical records show why you couldn’t work and back up the severity of your injuries. According to California Civil Code Section 1714, everyone has a duty to use reasonable care in their actions. If another party’s negligence caused your injuries, you have a legal basis to recover these losses.
Did you miss a big project or a potential promotion because of your injuries? Write it down. Every lost chance adds to the bigger picture of your financial setbacks.
California’s Proposition 213 has its quirks. It limits non-economic damages for uninsured drivers, but thankfully, it doesn’t touch claims for lost wages or economic losses.
The truth is navigating all this alone can feel like trying to solve a puzzle without all the pieces. A lawyer knows the rules of the game and can help you build a winning case.
Absolutely. Future lost wages—or “loss of earning capacity”—are critical for people whose injuries permanently affect their ability to work. For instance, if you were earning $70,000 as a construction worker but now can only handle a desk job at $50,000, that $20,000 gap represents your lost earning capacity. And it adds up over time.
Proving future losses often calls for expert input. Vocational experts and economists can help estimate how your injuries will impact your career and income.
Self-employed? No problem. While it’s a bit trickier, you can still prove lost wages. Tax returns, invoices, canceled client appointments—anything that shows the financial impact works. As per California law, the key is clear documentation.
In most cases, the at-fault party’s insurance company foots the bill for lost wages. But don’t expect them to roll out the red carpet. Insurers are pros at minimizing payouts, so be prepared to back up your claim.
If you have short-term disability benefits, these can help cover some income while your personal injury claim is in progress. Keep in mind, though, that disability payments might impact your final settlement amount.
Recovering lost wages takes time. If the insurance company cooperates, things could move quickly. If they don’t, you might have to buckle up for a longer ride, possibly even litigation. Having a sharp personal injury lawyer in your corner can make the journey smoother and faster.
It’s not all smooth sailing. Here are some bumps in the road:
A lawyer can make a significant difference by:
Time is ticking. In California, the statute of limitations for most personal injury cases is two years from the date of the accident. If you wait too long, you could lose your right to seek compensation.
Additionally, filing your claim sooner rather than later helps ensure that evidence is fresh and witnesses’ memories are still clear. California Code of Civil Procedure Section 340.1 highlights the importance of acting quickly as doing so ensures that legal deadlines are met and your rights are preserved.
Being out of work after an accident feels like adding insult to injury. But there’s light at the end of the tunnel. Filing a personal injury claim can help you recover lost wages and regain stability.
Remember, you don’t have to navigate this alone. A personal injury lawyer can make all the difference, from gathering evidence to negotiating with insurers. Don’t wait—reach out to an experienced personal injury attorney like one from our team at DP Injury Attorneys today. After all, you’ve got enough on your plate; let someone else shoulder the legal stress while you focus on healing.
Arthur Paul D’Egidio is the Managing Partner of DP Injury Attorneys, a San Diego personal injury law firm. With more than 12 years of experience in California injury law, he has dedicated his practice to representing clients in a wide range of personal injury matters, including car accidents, workers’ compensation, slip and falls, catastrophic injury, and wrongful death cases.
Arthur received his Juris Doctor from the Thomas Jefferson School of Law and is a member of the State Bar of California as well as the San Diego County Bar Association. He has received numerous accolades for his work, including being named a Super Lawyer for seven straight years by Thomson Reuters and a “Top 40 Under 40” by the National Trial Lawyers.
