Calculating Compensation for Lost Wages After a Mississippi Car Crash

The moments after a car crash on a Mississippi highway like I-10 or Highway 49 are chaotic and painful. Your first thoughts are about the damage, the other driver, and your injuries. It is often not until days later, when you are unable to return to work, that a different kind of panic sets in. The physical pain is overwhelming, but the financial pressure of mounting bills and a disappearing paycheck can be just as debilitating.

What Do “Lost Wages” Include in a Mississippi Injury Claim?

When you file a personal injury claim, “lost wages” is a form of economic damage. This is a category of compensation for direct, verifiable financial losses. Many people mistakenly believe this only covers their base salary. In reality, it includes all forms of income and employment benefits you lost because of your injuries.

A comprehensive claim for lost income can include:

• Base Salary or Hourly Pay: The most straightforward part of the calculation, representing the regular pay for hours or days you could not work.
• Lost Overtime: If you can prove you regularly worked overtime and were unable to do so because of the accident, this potential income can be included.
• Lost Commissions and Bonuses: For salespeople, real estate agents, or executives, a significant portion of income comes from commissions or performance bonuses.
• Sick Days and Vacation Pay: If you were forced to use your paid time off (PTO), sick days, or vacation days to recover, you can claim the value of that time. You would not have used those benefits if not for the accident.
• Lost “Gig Work” or Freelance Income: Income from side jobs, freelance projects, or app-based work (like Uber, Lyft, or DoorDash) that you could not perform.
• Missed Promotions or Raises: If your injury prevented you from accepting a promotion, taking a qualifying exam, or caused you to miss a scheduled performance review and raise.
• Lost Employment Benefits: This can include the value of lost contributions to a 401(k), pension, or health insurance benefits if you were out of work long enough to lose them.

How Do You Calculate Past Lost Wages?

This category covers the income you lost from the date of the accident up to the point your case is resolved or you are able to return to work. The evidence required depends entirely on how you are paid.

For Salaried (W-2) Employees

This is often the easiest type of income to prove. The calculation is generally your annual salary broken down into a daily or weekly rate, multiplied by the amount of time you were medically required to miss work.

Key evidence includes:

• A Letter from Your Employer: This letter, on company letterhead, should verify your position, your salary, and the specific dates you were absent from work due to your injuries.
• Recent Pay Stubs: These show your rate of pay and deductions before the accident.
• Doctor’s Notes: Medical records are essential. You need written disability notes from your doctor that explicitly state you were unable to work during that specific time period.
• W-2 Form: Your most recent W-2 helps establish your annual earnings.

For Hourly Employees (Including Overtime)

For hourly workers, you must show your hourly rate and the number of hours you missed. If you also claim lost overtime, you must establish a consistent pattern.

Key evidence includes:

• Time Sheets or Pay Stubs: You will need to provide records from several months before the accident to show your average weekly hours, including any regular overtime.
• Employer Verification: A letter from your manager or HR confirming your hourly rate and the availability of overtime hours that you missed.
• Medical Work Releases: Your doctor’s note must specify your work limitations (e.g., “no lifting over 10 pounds,” “no standing for more than 30 minutes”) or state that you were completely unable to work.

For Commission, Tip, or Bonus-Based Employees

This calculation is more complex because the income is variable. The goal is to project what you would have earned based on your past performance.

Key evidence includes:

• Tax Returns: Your 1040 forms and schedules from the past two to three years can show a history of your average annual income.
• Sales Reports or Commission Statements: Records from the months preceding the accident can establish your performance trajectory.
• Bank Statements: Deposit records can help substantiate your declared income.
• Statements from Colleagues or Management: A letter from a sales manager confirming your performance level and the commissions you were likely to earn can be powerful.

How Do You Prove Future Lost Earning Capacity?

This is not a simple calculation. You cannot just guess what you might have earned. Proving future lost earning capacity is a complex process that requires testimony from outside professionals.

The Role of Medical Experts

It all begins with your medical records. Your doctors must provide opinions on the permanency of your injury.

• Impairment Rating: A doctor will assign a “permanent partial impairment” (PPI) rating, which is a percentage that quantifies your loss of function.
• Functional Capacity Evaluation (FCE): This is a series of tests to determine your precise physical limitations. The results might state you can no longer lift more than 20 pounds, stand for more than one hour, or use your hands for fine-detail work.

The Role of a Vocational Expert

A vocational expert is a professional who analyzes a person’s work history, education, and medical limitations to determine their employment prospects. This expert will:

• Review your medical records and FCE results.
• Analyze your job history, skills, and education.
• Testify on what jobs (if any) you are still capable of performing with your new limitations.
• Research the market rate and availability for those jobs in your geographic area.
• Calculate the difference between your pre-accident earning potential and your post-accident earning potential.

The Role of an Economist

Once the vocational expert determines the annual income loss, an economist is often needed. This expert will:

• Take the annual loss amount and project it over your expected remaining work-life.
• Factor in variables like inflation, cost-of-living increases, and career advancement potential.
• Calculate the “present-day value” of that future sum. This is the lump sum amount you would need to be paid today, which, if invested, would cover all your future projected losses.

Contact Our Mississippi Car Accident Attorneys

Calculating lost wages and proving future earning capacity is a detailed and often contentious process. It requires more than a simple calculator; it requires strong medical evidence, detailed financial records, and, in many cases, the testimony of vocational and economic professionals.

The legal team at Gardner Law Group has extensive experience handling complex car accident claims for victims across Mississippi. We know the tactics insurers use to deny fair compensation for lost income, and we are prepared to build a thorough, evidence-based case on your behalf. We can manage the investigation, gather the necessary documentation, and handle all communications with the insurance company so you can focus on your health and recovery.

If you have been injured in a car crash and are worried about your lost income, do not try to fight this battle alone. To discuss your situation and learn more about your legal options, please call us at 228-762-6555 or fill out our online contact form to schedule a consultation.