How Are Lost Wages Calculated After an NYC Car Accident? Insights from Accident Lawyer New York

When you are hurt by a car accident, losing the ability to work and earn is one of the most serious consequences. Fortunately, there are mechanisms in place that allow you to recover the wages you’ve lost. However, calculating the losses you’ve suffered is not always straightforward, especially when you factor in things like overtime and bonus. In this post, the team at Gabriel Law will wear the hat of an accident lawyer in New York and explain how lost wages are calculated and why you will need legal assistance to achieve a full and fair settlement.

Compensation for lost wages under insurance

In New York, when you are injured in a car accident, your insurance coverage is your first source of compensation. Your Personal Injury Protection (PIP) coverage covers your medical expenses, lost wages, and other connected expenses.

Under your PIP coverage, you can claim up to 80% of lost wages, with a cap of $2000 per month for a period of three years. Salary, overtime, sick pay, vacation days, and commissions are all covered under the insurance policy. The base PIP policy can cover up to $50,000, but this cap can be increased by purchasing optional additional coverage.

Since your PIP coverage is no-fault insurance, the injured person will receive the compensation, regardless of their fault in the accident.

Compensation for lost wages under lawsuits

If the insurance policy is not enough to cover all your lost wages, you will need to step outside the no-fault system and file a personal injury lawsuit. You will be allowed to file a lawsuit if you can show that you have suffered a “serious injury” or the basic economic damage suffered exceeds $50,000.

What counts as a “serious injury” is defined in Section 5102 (d) of New York Insurance Law and includes injuries such as death, significant disfigurement, the loss of a body part, the permanent loss of a bodily function, or when an injury prevents you from engaging in daily tasks and activities for at least 90 days within the first 180 days after the accident (90/180-day rule).

Calculating short-term lost wages

For individuals who can return to work after a short period of recovery, calculating lost wages is quite straightforward. It’s a matter of determining how much you would have earned for the time you were away from work. When calculating the amount, the typical considerations are:

• Basic salary or hourly wage – By identifying how much you earn for an hour or a day, the amount can be multiplied by the hours or days you missed work.
• Bonuses and overtime – includes bonuses, commissions, and overtime pay you earned on a regular basis before the accident.
• Perks and other benefits – your employer’s contribution to your health insurance, retirement plan, and other benefits that come as part of your employment status.

Calculating future lost wages and loss of earning capacity

If injuries lead to permanent or long-term disabilities that prevent you from returning to work, then calculating future lost wages and loss of earning potential can become complex. Some of the relevant considerations include:

• Age and life expectancy – Younger victims can face decades of lost income, making them entitled to more compensation.
• Education and skill level – the injury could make it difficult to continue work that is physically demanding or requires a highly specialized skill.
• Severity of the injury – The more severe the injury, the more compensation a person is entitled to receive.
• Wage trajectory – If the victim was on track to receive a promotion or increase their earnings, the final damages assessment can reflect the future increases.

For example, A is a construction worker and is the main source of income for his family. However, due to an accident, he has suffered nerve damage and lost several fingers. This prevents him from returning to work, and even if he does return to work, he would be unable to work at the same level. The inability to work can significantly reduce his earning potential and the ability to be promoted. In such a situation, a person can be entitled to significant compensation based on the factors mentioned above.

Conclusion

When you have been injured in a car accident, the inability to return to work can be a significant financial burden on you and your family. That is why it is important that any settlement accurately reflects and compensates you for your lost wages. To make sure that this is the case, you need to hire an experienced New York City auto accident attorney.

If you’re looking for any skilled and experienced team of attorneys that can help you get the compensation you deserve, then Gabriel Law is the personal injury law firm in NYC for you. If you’re ready to get started on the path to recovery, contact us today and schedule your free consultation.