Accidents of whichever type can be really difficult to deal with and come with a number of consequences. But a lot of times, one thing that is ignored in a lot of accident cases is the financial recovery process when it comes to lost wages.
So, it must be remembered that whenever an accident occurs, it not only impacts the physical body but also does affect the wallet.
After an accident, it may take an individual days, weeks, or months to get back into work, and this could result in loss of pay. This unexpected interruption of income can have a devastating effect on a family’s financial stability if that person is the household’s primary source of income.
A car accident lawyer can help a lot in explaining the effects that impact the wallet.
Lost wages are the amount that a person might lose when they meet an accident. Now, when a person is evasive from an injury, their work, lifestyle, and daily routine are impacted seriously. So, this is basically the amount that a person might have made if they were not injured.
Some of the components of the lost wages include:
- This is the simplest of the components, which means that whether they are paid hourly or receive a salary, they make regular income.
- Potential loss of bonuses and commissions should be taken into account where an injury prevents a person from attaining them, in the case of those whose earnings are linked to performance bonuses or commissions.
- If an individual was working more than the usual times, the wages that are to be paid for those hours must be made sure of.
- In the case where an individual must use vacation time or sick leave to recover, they lose a considerable amount of benefits. They must also be ensured.
These two types of wage losses must be understood in order to achieve financial recovery.
It means the ability of a person to make money in the future is reduced. This isn’t just about the immediate aftermath; it’s about the long-term consequences of the injury.
For example, if a person gets injured on some part of the body that helps them get their job done, the long-term wage loss case can arise, too. This means that the individual will not only be losing their current salary, but also, if they go back to work, their productivity might decrease, resulting in more lost wages.
This refers to a time when an individual is unable to work because of his or her injuries. That’s the aftermath of an accident. For instance, for three months, a person might not be able to work because they are recovering. This would result in 3 months of lost wages.
A personal injury lawyer can help victims with lost long-term wages.
One of the biggest challenges that are faced by the attorneys and the victims is the calculation of the lost wages.
In order to begin, multiply the hourly wage by the number of hours missed due to injury. If the person makes $20 per hour and misses 50 hours of work, he’ll have $1,000 in lost wages.
Let’s take a look at all the overtime that could be done. It is necessary to take into consideration that in our hypothetical employee’s case, she often works 10 hours of overtime a week at a time and half pay. That means there would be twenty more hours at $30 a day for two weeks, and we’d still lose $600 in wages.
There are a lot of other considerations that you need to keep an eye on, like there are people that work multiple jobs a day. Now, the injuries will be keeping them away from all of the jobs they are a part of, so lost wages must be considered for all of the jobs.
There are some tangible financial benefits that must be kept in check. The unused paid leaves and the retirement accounts, if not used, must be recovered.
So, the calculation is the most important part as this is the main amount that you will be getting. Careful consideration must be given to all sources of income and benefits that have been impaired by the injury so as to arrive at an accurate calculation of lost wages.
When it comes to considering the lost wages in cases, these must be calculated accurately. The role of a lawyer here is very important as they can decide on the right amount and provide justice to the injured party. So, the selection of the best lawyer in such cases is the key to go.