Can I Be Reimbursed for Lost Wages?

A serious injury can unexpectedly put you out of work for weeks or even months. Depending on where you live, how you were injured, and who you work for, you might continue to receive some income via temporary disability, workers’ compensation, or paid time off. But, more than likely, your employer isn’t going to keep paying you if you’re not working, and things like disability benefits and workers’ compensation only pay a portion of your average wages. In other words, if you suffer an injury that puts you out of work, you’re going to miss out on wages you would have otherwise earned.

You didn’t ask to be injured, and you didn’t plan on taking time off work. But the reality is that medical treatment, rehabilitation, and physical therapy all take time. What’s more, a major injury, such as severe burns or head trauma, can have lasting implications that make it difficult to go back to your old job (or any job) at all—even after you’ve completed treatment and have reached “maximum medical improvement.” The good news is that, by filing a personal injury claim or lawsuit, you can seek compensation for your lost wages, or the income you would have earned if you did not have to take time off work due to an injury.

What Counts as “Lost Wages?”

While “lost wages” includes your hourly wages or base salary, it can also include a lot more. If an injury keeps you from working, the law allows you to pursue compensation for all the financial benefits you’ve missed out on because of that time away from your job.

Regular Earnings

Your regular earnings are your standard paycheck, whether you’re paid hourly, on salary, or a mix of both. For example, if you typically earn $30 an hour and miss 160 hours of work over the course of a month, your lost regular wages would be $4,800. Salaried employees can calculate their loss based on their daily or weekly rate multiplied by the amount of time missed.

Commissions & Bonuses

If you work in a job where commissions or performance bonuses are a regular part of your income, those can be included in your claim. Suppose you’re a salesperson who typically earns $5,000 in commissions each month, but your injury kept you off the floor for six weeks. You may be entitled to recover those lost commissions, especially if your past earnings show a clear pattern.

Similarly, if you missed out on a quarterly bonus or year-end performance incentive because you weren’t able to meet certain goals due to your injury, that can also be considered part of your lost wages.

Paid Time Off (PTO)

Many people use their paid vacation days or sick leave to cover missed work after an injury, especially in the early days before they realize how serious the situation is. But paid time off (PTO) is part of your total compensation; it’s time you’ve earned. If you’re forced to use it to cover time you otherwise wouldn’t have missed, the value of that time can be included in your claim.

For example, if you used 10 days of PTO while recovering from a car accident, that’s 10 days of future flexibility you no longer have. You earned that time off, and you deserve to be compensated for it.

Lost Overtime

If you regularly work overtime—and can show that through payroll records or employer statements—you may be able to recover the overtime pay you missed. This is particularly relevant for workers in industries where overtime is a standard part of the workweek, such as oilfield operations, maritime jobs, or construction. For instance, if your injury caused you to miss a turnaround job where you typically work 60-70 hours a week, your lost overtime pay could far exceed your base wages.

Lost Benefits

Wages aren’t the only part of a job that matters. If your injury causes you to lose employment benefits, those losses can also be claimed.

These might include:

• Employer contributions to your retirement plan
• Health insurance coverage paid by your employer
• Profit-sharing or stock options that vest based on continued employment

Even temporary interruptions in benefits can have long-term consequences. For example, if your employer stops contributing to your 401(k) while you’re on unpaid medical leave, that loss adds up over time and can be part of your damages.

Loss of Perks

Some jobs come with perks that aren’t included in your paycheck but still have measurable value. If your injury forced you to give up a company vehicle, cell phone allowance, housing stipend, gym membership, or travel privileges, those perks may also be recoverable. For instance, an offshore supervisor who normally receives a monthly vehicle stipend might be able to include that lost benefit in their claim while recovering at home.

Lost Wages vs. Lost Earning Capacity

When you’re injured and can’t work, there are two major categories of financial loss related to your income: lost wages and lost earning capacity. Although they sound similar, they represent different types of damages and are calculated in different ways. Understanding the distinction between the two can help you better evaluate what your case may be worth—and make sure you’re not leaving money on the table.

Lost Wages: What You've Already Missed

Lost wages refer to the income you’ve already lost between the time of your injury and the date your claim is resolved, whether through settlement or trial. It’s a backward-looking calculation. You’re essentially being reimbursed for the money you would have earned had the injury never happened.

For example, if you were making $75,000 a year and had to take three months off for recovery, your lost wages would be roughly $18,750—plus any commissions, benefits, or other compensation you missed during that time.

Lost Earning Capacity: What You’ve Lost Going Forward

Lost earning capacity (sometimes called diminished earning potential) is about the future. It compensates you for your reduced ability to earn income over time because of long-term or permanent effects from your injury.

This may come into play if:

• You can no longer work in your old job and have to take a lower-paying one
• You’re limited in how many hours you can work
• You’re permanently disabled and unable to return to work at all
• You’re forced to give up a career path that would have led to higher earnings

These claims are more complex. Unlike lost wages, which involve math based on past paychecks, lost earning capacity requires predictions about the future—how much you would have earned versus how much you can earn now.

That might include evaluating:

• Your age and career trajectory
• Your education and training
• The physical or cognitive limitations caused by the injury
• The types of jobs now available to you
• Market wages for those roles
• How long you would have worked before retirement

For instance, imagine a 35-year-old commercial diver who sustains a spinal injury that prevents them from returning to offshore work. Their current lost wages might total a few months of pay, but their lost earning capacity could be hundreds of thousands—or even millions—of dollars over a lifetime. They may now be limited to office-based work that pays a fraction of what they were earning before.

Because future losses are speculative by nature, proving lost earning capacity often involves testimony from experts: economists, vocational rehabilitation specialists, medical professionals, and sometimes even life-care planners.

Proving Lost Wages in a Personal Injury Claim

To be reimbursed for your lost wages, you’ll need to prove exactly what you’ve lost. The success of your claim rests on your ability to demonstrate the value of your lost earnings, benefits, and perks. This requires clear, detailed documentation that shows both what you were earning and how your injury affected your ability to earn it.

Some of the most important records include:

• Recent Pay Stubs: Recent pay stubs are critical, as they demonstrate your normal wages, hours, and any consistent overtime or bonuses you’ve regularly or recently earned from your employer.
• Tax Returns: Tax records from the past two to three years can help establish how much you’ve earned in recent years. This can corroborate pay stubs to prove your typical earnings.
• Confirmation of Missed Work: Ask your employer for a letter confirming the dates you missed (including any overtime hours), how your job duties were affected, and whether your position remains available.
• Medical Records: Copies of your medical records and doctor’s notes can help support your inability to work or explain necessary work restrictions (e.g., lifting limits, inability to stand, or cognitive impairments).

The more specific and consistent this documentation is, the stronger your claim becomes. Vague estimates or unsupported numbers can be challenged by the other side—and they often are.

What If I'm Self-Employed?

Lost wages aren’t just for salaried employees. If you’re self-employed—whether you own a business, work as a freelancer, or operate as an independent contractor—you can still recover compensation for the income you lost because of your injury. The difference is that proving your losses may take a bit more legwork.

For self-employed individuals, “lost wages” may include:

• Income from contracts or jobs you were unable to fulfill
• Revenue from canceled appointments, gigs, or projects
• Lost business opportunities during your recovery period
• Decreased productivity or delayed deliverables due to physical limitations
• Extra costs for hiring someone to temporarily take over your role

Because self-employment income can fluctuate from month to month, it's especially important to show consistent income history and clear proof of lost opportunities.

You’ll likely need:

• Past tax returns (typically 2–3 years) to establish a baseline of your annual income
• Profit and loss statements or business financial reports
• Bank statements that show regular client payments or deposits
• Invoices, contracts, or written correspondence showing booked jobs or scheduled work you had to cancel
• Documentation of substitute labor costs, if you had to hire someone to complete work on your behalf

For example, if you’re a self-employed web developer who had to decline three client contracts after a serious car accident, you can show those contracts, the agreed-upon rates, and similar past projects to establish the financial impact of your injury. If you hired another developer to take over some of your work temporarily, those labor costs may also be compensable.

The key is tying the missed or lost work directly to your injury and, importantly, having the documentation to back it up. Without solid records, insurance companies may downplay or dispute the value of your losses. But with the right evidence, self-employed individuals can make just as strong a case for lost wages as anyone else.

Recovering Lost Wages: Making You “Whole” Again

When an injury keeps you from working, the financial pressure can be immediate and overwhelming. Your paycheck disappears, but your bills don’t. Whether you’re out for a few weeks or facing a long-term disability, the income you’ve lost isn’t just a number; it’s money you were depending on to care for yourself and your family.

That’s why lost wage compensation is such an important part of a personal injury claim. It’s not extra—it’s part of making you whole. You have a right to recover what your injury has cost you, including the paychecks you’ve missed and the future earnings you’ve lost because of someone else’s negligence.