Lost Wages After a Car Accident in New York

The financial impact of a car accident can be considerable. There could be expensive repairs to fix your car and medical bills from your treatment. You could also be out of work while healing, unable to earn a paycheck and make ends meet. Making a lost wage claim can help you recover compensation while you recover from your injuries.

What Are Lost Wages?

Lost wages are income you would have earned if you had not suffered an injury and could not work. Salary, bonuses, benefits, and other applicable missed opportunities qualify as lost wages.

Personal Injury Protection and Lost Wages

New York is a no-fault state for car accidents. Each driver will turn to their own Personal Injury Protection (PIP) insurance to cover certain losses stemming from an accident, up to their policy limits. You file a no-fault application with the insurance company for the car you were driving or in which you were a passenger. This coverage pays for medical expenses, lost wages, and costs for replacement services. According to the New York State Department of Financial Services, PIP insurance pays 80% of lost wages, up to a maximum payment of $2,000 per month for up to three years following the accident, subject to certain statutory offsets. You must file your claim with your no-fault insurance provider within 30 days of the accident date to receive your PIP benefits.

If you exhaust the loss wage coverage under your own no-fault policy or you suffer a serious injury, you can claim the difference from the liability coverage from the at-fault party. Through a third-party claim, you can seek compensation for future potential loss of income, pain and suffering, vehicle repairs, and other damages.

Short-Term vs. Long-Term Wage Loss

Your car accident financial impact can be extensive. In the short term, it can mean missed paychecks while you’re unable to work, forcing you to borrow money to pay for groceries, gas, and other living expenses. The long-term income impact is even more serious, as lingering injuries could hinder career opportunities and possibly even limit your future earning capacity.

Calculating Lost Wages

Lost wages account for any money you would have earned if the accident hadn’t occurred. This can include wages, salary, bonuses, benefits like overtime, and other applicable, affected sources of revenue.

For Hourly Workers

You can calculate your lost wages by multiplying the hours you missed by your hourly pay rate. If you’re a tipped employee, you can look at the amount you made in a similar week before the accident or compare the tips earned by fellow workers while you were out.

For Salaried Employees

To calculate your lost wages as a salaried employee, turn your salary into an hourly wage and multiply the number of missed hours by the hourly rate.

You can use old pay stubs and income tax returns as references to calculate your lost wages. You might also need a letter from your employer for verification purposes.

Using PTO

If you used benefits like paid time off (PTO) while recovering from your injuries, calculate a day’s worth of PTO and multiply that by the number of days you used.

Self-Employed

Self-employed workers can provide contracts for uncompleted projects and payment estimates as proof of lost income.

Dealing with Insurance Companies

Negotiating with insurance companies can be stressful, so be prepared. The more evidence you have to support your claim, the likelier you are to succeed. Here are some documents that can help you prove your case for lost wages:

• A No-Fault Wage Verification Report from your employer
• A doctor’s note stating you cannot perform your regular job duties
• Proof of lost hours
• Previous pay stubs and income tax returns

Working with a qualified personal injury lawyer can help you avoid a denied claim or an insufficient settlement.

Get Legal Help for Lost Wages

An experienced personal injury attorney in New York can help you calculate and pursue maximum compensation for your lost wages. Scott C. Gottlieb, Injury Law Attorney is focused solely on injury cases. We have a long track record of success in securing large verdicts and settlements for injured people. We handle your entire claim. Contact us today for your free consultation.