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How Lost Wages and Future Earning Capacity Are Calculated

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Posted on August 23, 2025

When an injury keeps you out of work, you may wonder how you will possibly pay your bills. If someone else is responsible for your accident, however, you have the right to pursue legal action and recover compensation for all of your damages—including lost wages and future income. Calculating lost wages involves more than multiplying your rate by missed work hours; it requires a comprehensive analysis of your employment history, benefits, overtime patterns, and career trajectory to ensure you’re compensated for the full scope of your loss.

Documenting Your Pre-Accident Income

To claim lost wages, you first need to establish your earning patterns before the accident occurred. You will need to gather several months or even years of pay stubs, tax returns, and employment records to demonstrate your typical income. If you are self-employed or work irregular hours, bank statements and business records can provide this important information.

The goal of this evidence is to establish a picture of what you would have earned had the injury never happened. As such, this documentation should include information about the other benefits you may have missed out on. Regular overtime, commissions, bonuses, tips, and seasonal work all contribute to your true earning capacity.

Calculating Immediate Lost Wages and Benefits

Once your pre-accident income is established, your injury attorney in St. George will begin calculating your immediate lost wages and benefits. First, they will assess your average earnings and the time that you have been unable to work. Then, they will multiply this average by the specific period of absence to determine your base wage loss.

Beyond your regular paycheck, you have likely lost valuable employment benefits that deserve compensation. Your lawyer will also factor in health insurance premiums, retirement plan contributions, paid time off accrual, and other workplace benefits when calculating the benefits that you have lost. 

Assessing a Reduction in Long-Term Earning Capacity

In some cases, your injuries may prevent you from working in the same capacity, returning to your previous position, or even holding a job at all. Your attorney will work to calculate the value of your diminished earning capacity over your remaining work years. This analysis considers multiple factors: your age, education level, work experience, and the specific limitations your injury creates. 

Your St. George accident attorney will enlist the help of experts who can help project your future earnings based on your career trajectory and industry standards. Economists analyze labor market data to determine what you would have earned in your field over time, while vocational rehabilitation specialists assess how your physical or cognitive limitations impact your ability to perform various types of work. Medical experts can testify about the permanence and extent of your limitations, helping establish whether you can return to your previous role or must transition to different work entirely.

The Role of a Personal Injury Attorney in Calculating Wage Loss

Insurance companies often undervalue or dispute claims for lost wages, especially when injuries affect your long-term career prospects. Additionally, it’s easy to overlook complex calculations like benefits and career advancement projections when you are handling these claims alone.

A Utah personal injury lawyer will work with economists, vocational experts, and medical professionals to document the true financial impact of your injuries. They will work to recover compensation for your immediate losses as well as promotions you would have received, benefits you have lost, and reduced earning potential due to ongoing limitations. Contact an experienced attorney from We Win Injury Law who will fight for your full compensation.