If you are injured in a Minnesota car accident, you might miss work while you rest and recover. You also may be eligible to file a claim to recover compensation for your injuries and damages if someone else is to blame for your accident. Contact Milavetz Injury Law, P.A., today to schedule a free initial consultation to discuss your legal options and learn how our experienced lawyers can help you recover lost wages.
What Are Lost Wages?
In a car accident case, lost wages refer to the income you lose from missing work due to an injury caused by another party’s negligence. To obtain lost wages after an accident, you must prove that the injuries that forced you out of work are directly related to the car crash.
Some examples of lost wages that may be available in a car accident claim include the following:
- Salary or hourly wages: This is the income you would have earned if you worked as usual.
- Commissions and bonuses: If you typically earn commissions or bonuses as part of your job, you may pursue these losses in a lost wages insurance claim.
- Overtime pay: If you occasionally work overtime hours, you may file a claim for the overtime income you lost.
- Self-employment income: If you own a business, you can claim lost wages from a car accident based on your average earnings before the crash.
- Paid time off, vacation time, or sick days: If you used your PTO, vacation time, or sick days during recovery, you can seek compensation for these lost benefits.
Who Pays for Lost Wages After a Car Accident in Minnesota?
Minnesota is a no-fault state for auto accidents. The Minnesota No-Fault Automobile Insurance Act requires drivers to maintain Personal Injury Protection, or PIP, coverage. When an accident occurs, an injured victim with lost wages must first turn to their own insurance company for compensation, regardless of fault.
The minimum no-fault auto coverage in Minnesota is $40,000. Minnesota’s PIP coverage allows you to seek $20,000 for medical expenses and $20,000 for non-medical expenses from your insurance provider. These benefits mean you can receive compensation of up to $20,000 in a lost wages insurance claim if you carry the minimum no-fault auto coverage.
Generally, the first $20,000 is paid by your insurance coverage. Your disability insurance can cover additional lost wages if you carry such coverage. However, if your lost wages and other damages exceed your coverage, you may be eligible to file a claim with the other driver’s insurance company or a personal injury lawsuit against the driver.
How Are Lost Wages Calculated?
Insurance companies and courts will use your salary or wages to determine how much you would have earned when you were out of work due to your injury. Calculations also may factor in bonuses, commissions, overtime, tips, and other benefits that affect your pay.
Under Minnesota law, your PIP coverage entitles you to weekly benefits for 85 percent of your current and future gross income loss from your inability to work. This allowance is subject to a maximum of $500 per week.
For hourly workers, your daily wage is calculated by first determining your average hourly wage. This calculation is simple if your employer pays you a consistent hourly rate. However, if your hourly rate varies, you can estimate it by adding the totals from your pay stubs and dividing by the number of hours you worked.
Once you calculate your average hourly rate, the next step is multiplying it by the number of missed hours. Time missed from work includes full days and any partial days or hours you missed work due to therapy sessions or medical appointments.
For instance, if you work 8 hours a day with an average hourly wage of $30 and miss work for five days, your lost wages would be:
$30 × (8 × 5) = $1,200 in lost wages.
However, you can only receive 85 percent of your gross income under Minnesota law. This cap changes the above figure to $1,020. Because this value exceeds the maximum, you’ll receive $500 per week.
Salaried workers need to know their annual salaries and the number of workdays in a year—generally, 260 days. This calculation can vary depending on your work schedule. Once you have these figures, divide your annual salary by workdays to get your daily wage.
Let’s say you earn $70,000 a year, and you miss work for five days. Your daily wage would be:
$70,000 ÷ 260 × 5 = $1,346.
Factoring in Minnesota’s 85 percent cap on lost wages, you would receive $1,144. Again, this exceeds the maximum, meaning you’d receive $500 weekly.
Evidence Required To Prove Lost Wages
When proving your lost wages after an auto accident, here are some essential documents that can build a strong case:
- W-2 forms from the previous tax year
- Wage verification letter from your employer
- Pay stubs
- Bank statements
- Doctor’s note recommending time off work
An attorney can use these documents to prove lost wages after an accident and advocate for the maximum compensation available.
Factors That Affect Lost Wage Claims
Every car accident is unique. Different factors may affect your lost wage claim and how much you can receive in a settlement or verdict. Here are the main factors that can affect your lost wages insurance claim:
- Severity of injuries
- Lost earning capacity
- Lost income opportunities
- Retirement contributions
- Age
- Health benefits
- Bonuses
- Occupation and industry earning estimates
- Lost services
- Documentation and evidence
Understanding these factors after a car accident can help you and your personal injury attorney build a compelling lost wages insurance claim in Minnesota.
How Can an Attorney Help You Recover Lost Wages?
To recover compensation for lost wages, contact an experienced car accident attorney to file an insurance claim against your insurance company or any other party.
Dealing with insurance companies can be difficult. Insurance adjusters will try to minimize their company’s liability by questioning the amount of your lost wages or the extent of your injuries.
A car accident attorney can assist you in various ways when recovering lost wages, including:
- Case evaluation: A Minnesota car accident lawyer can analyze your case and determine whether you have a valid claim. They also may develop a legal strategy to help you get the maximum compensation for your lost wages through settlement talks or litigation.
- Gathering evidence: An experienced attorney can gather all necessary documents, such as employment contracts and tax returns, to prove your lost wages insurance claim. An attorney may also hire expert witnesses, including economists, to illuminate the extent of your lost wages or income.
- Calculating future lost wages: If you sustain long-term injuries or disabilities after an accident, your attorney can calculate future lost wages, including potential promotions and raises.
- Dealing with insurance companies: Insurance companies are notorious for offering lowball settlements. A skilled attorney can draft a demand letter that details relevant facts about your case, a description of your injuries, and a request for payment for lost wages. They can effectively negotiate with insurance companies to help you secure fair compensation.
- Representing you in court: If out-of-court negotiations fail, your lawyer can advocate for you in court, presenting relevant evidence to a judge and jury proving your lost wages.
- Peace of mind: Professional legal assistance allows you to focus on your recovery rather than complex and confusing legal processes.
It’s important to note that Minnesota personal injury claims have a deadline, known as a statute of limitations, for you to file a case. In Minnesota, you generally must file a lawsuit against an at-fault driver within six years of the accident date. However, you should start building your case as soon after the accident as possible. Contact an experienced attorney promptly for top-notch legal representation.
Contact Milavetz Injury Law, P.A. To Discuss Your Lost Wages Insurance Claim
If you have lost wages or income after a car accident, our Minnesota personal injury lawyers can explain how to recover compensation and answer any questions. You can explore your legal options during your free consultation with our attorneys. Call us today at 763-560-0000 or contact us online to discuss your case.
FAQs
Can you still sue for lost wages if you are self-employed or work on commission?
Yes. You can sue for lost wages after a car accident if you work on a commission basis. If you are self-employed, you can file a claim for lost income rather than lost wages. Evidence such as lost customers and missed business opportunities can bolster your claim.
Can 1099 workers and independent contractors claim lost wages?
Yes. Lost wages aren’t just available to W-2 employees. Even though income for independent contractors fluctuates, you can still file a claim to recover lost revenue. You’ll need evidence proving you missed work due to your injury.
Can you pursue lost wage compensation if you used PTO while recovering from your accident?
Yes. If you used your PTO to cover days you missed work due to your injury, you may include the PTO used in your claim for lost wage compensation.
