- Sometimes, a lawyer is just as important as a doctor...
An injury can destroy your life beyond just physical pain – it can also wreak havoc on your finances. Every day of work you miss is lost money and your bills will continue to pile up. Fortunately, there are ways to recover lost wages and ease your financial strain. Whether your injury happened on the job or anywhere else, knowing your options for compensation can prevent a long-term financial disaster.
Workers’ compensation for workplace injuries
If you were injured on the job, you can file a workers’ compensation claim to recover a portion of your lost wages – typically around two-thirds of your average weekly income. In most cases, filing a claim through workers’ comp is required and lawsuits are reserved for a very limited number of situations. However, if your employer doesn’t carry a workers’ comp policy as required by law, you can sue.
Understanding how to file workers’ compensation properly can make a big difference in ensuring you meet all requirements and avoid delays in receiving your benefits.
Just be aware that there are strict deadlines for filing a workers’ comp claim that can be as short as 30 days following your injury. If you miss the deadline, you can lose your right to benefits.
Personal injury lawsuits
A personal injury lawsuit is appropriate for car accidents, slips and falls, defective products, dog bites, medical negligence, and other non-work injuries that prevent you from working. If someone else’s negligence caused your injury, you could be entitled to full wage reimbursement through a lawsuit. Courts often award damages for reduced ability to earn money in the future if your injury resulted in permanent limitations.
Although most personal injury lawsuits settle before going to trial, that’s usually a good thing. Although juries sometimes hand down massive awards, it’s rare. Trials are time-consuming and expensive, and juries are unpredictable. Settling out of court is a faster way to get reliable compensation.
In most cases, the easiest route to recover compensation is through a lawyer. Claims can be complex and require legal knowledge to navigate. An attorney can calculate your lost wages accurately, bring in expert witnesses, negotiate a fair settlement with insurers, and make sure you don’t get shortchanged.
Understand the extent of lost wages
When you choose to pursue a lawsuit to recover compensation for your injury, lost wages will be a significant factor in calculating your award next to medical expenses.
Lost wages can extend beyond just the hours you’ve missed at work. They can also include a range of financial setbacks directly caused by your injuries. For example, lost wages include the income you would have earned as a salaried employee, overtime, and performance bonuses. Courts recognize these as part of your earning potential. And in some cases, benefits like retirement contributions, vacation accrual, and sick leave can also be factored into a lost wages claim.
Disability insurance
If you have short-term or long-term disability insurance through your employer, it can give you a financial safety net. Short-term disability usually kicks in within weeks of an injury and can replace between 40% and 70% of your income for several months. Long-term disability provides extended wage replacement when you’re unable to work for years or permanently.
There are policy exclusions and limits under disability insurance, so check with your insurer or employer to find out if you’re covered. Not all injuries qualify and coverage varies by insurer, employer, and state.
Be ready to prove your claim
Regardless of how you pursue compensation for lost wages, you’ll need to prove it. In addition to proving your injury restricts your ability to work, you’ll need letters from your employer confirming the days you’ve missed, your salary, lost overtime, and missed bonuses. You may even be required to provide financial records, like tax returns, to support accurate calculations.
Considering self-employment and gig workers
If you’re a freelancer, contractor, or gig worker, you won’t have access to the same resources as employees. However, you can still claim lost income. Some courts have considered cancelled gigs and missed contracts as lost wages, along with future lost wages. However, this only applies when there’s someone to sue for your injury. For example, a self-employed individual who gets into a car accident can sue for lost wages. However, if there is no negligent party involved in causing your accident – like if you just trip and fall in your own house – there’s nobody to sue.
If you do have grounds for a lawsuit, you’ll need to provide stronger documentation since gig income fluctuates.
Don’t let an injury steal your income
Lost income is one of the most stressful consequences of a serious injury, but it doesn’t have to destroy your finances. Whether you recover funds through disability insurance, file a lawsuit, or pursue a workers’ comp claim, you can replace lost income and avoid a major financial setback.