How to calculate lost wages for personal injury claim in NC

October 17, 2024

Calculating lost wages in a North Carolina personal injury claim is essential to ensure fair compensation for income lost due to an accident.

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This process includes calculating both immediate lost wages and any potential future income affected by your injuries. Here’s a detailed guide to help you calculate lost wages accurately:

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Steps to Calculate Lost Wages

1. Determine Your Pre-Accident Income

Start by establishing your income prior to the accident, which includes:

Regular Salary or Hourly Wage: For salaried employees, divide your annual salary by 52 weeks, then by the number of hours you work weekly. For instance, if your salary is $50,000 annually and you work 40 hours a week.

bonuses and Overtime: Include any bonuses, commissions, or regular overtime earnings

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2. Calculate Time Missed from Work

Calculate the days or hours you were unable to work due to your injuries, which can include:

Hospitalization: Days spent in the hospital.

Recovery Time: Days at home for recovery.

Medical Appointments: Hours spent on follow-up medical visits related to your injury.

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For example, if you missed two weeks of work (10 days) and earned $24.04 per hour for an 8-hour workday, your lost wages would be:

Lost Wages=Hourly Wage × Total Hours Missed=24.04×(8×10)=1,923.20

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Read: Is North Carolina a no-fault state?

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3. Consider Paid Time Off (PTO)

If you used paid time off, such as sick leave or vacation days, during recovery, this may affect your lost wages calculation. Insurers might reduce the claim if you were compensated with PTO, as you technically received income during that period.

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4. Account for Future Lost Wages

If injuries affect your ability to work long-term, you may need to calculate future lost wages, which involves:

Estimating Future Earnings: Calculate how long you expect to be out of work and estimate your future earnings during that time.

Vocational Experts: Consulting a vocational expert can be helpful if you need an evaluation of your long-term ability to work and your future earning potential.

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5. Gather Supporting Documentation

Collect essential documentation to substantiate your lost wages claim, including:

Pay stubs or tax returns showing income prior to the accident.

Medical records that document the extent of your injuries and the impact on your ability to work.

A statement from your employer verifying time missed and any PTO used.

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Calculating lost wages for a personal injury claim in North Carolina involves evaluating your pre-accident income, calculating time missed from work, accounting for any paid time off, and considering future lost earnings. Given the complexities of calculating future earnings, consulting an experienced personal injury attorney can be beneficial. An attorney can ensure all elements of your claim are addressed to maximize your compensation.

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