Partner at AKD Lawyers
Practice Areas: Personal Injury
When you’re injured in a car accident, the financial stress can hit harder than the collision itself. Medical bills, car repairs, and time away from work can quickly drain savings. One major concern for many accident victims is how to recover lost wages. In Louisiana, the law allows you to claim income you missed because of another person’s negligence but doing it right requires documentation and an understanding of how the process works.
This guide explains what counts as lost wages, how Louisiana law protects you, and the steps to prove your income loss after an accident.
Understanding What Counts as Lost Wages
Lost wages are the income you would have earned if the accident hadn’t happened. It includes more than your paycheck any financial benefits you missed while recovering can count toward your claim.
Common examples include:
- Regular hourly or salaried pay
- Overtime, commissions, and bonuses
- Paid time off or sick leave used during recovery
- Employer-paid benefits such as 401(k) contributions
Even if you used your sick leave or vacation days, their value can be part of your claim. The key is proving that you were unable to work because of your injuries and that these losses were directly caused by the accident.
People who are self-employed or freelance workers can also recover income loss, but they must show consistent records of past earnings and contracts.
Louisiana Civil Code Article 2315: The Legal Foundation
Louisiana law gives injured individuals the right to seek financial recovery from those who caused them harm.
Louisiana Civil Code Article 2315: “Every act whatever of man that causes damage to another obliges him by whose fault it happened to repair it.”
Under this rule, lost wages fall under compensable damages. If another driver’s negligence kept you from working, you can claim the income you missed during your recovery. Louisiana also follows a comparative fault rule, meaning your compensation may be reduced if you were partially at fault for the crash.
Claims for lost wages must be backed by solid documentation. Without proof, insurance companies may reject or undervalue your claim.
Documentation Needed to Prove Lost Wages
Insurance companies require clear, verifiable records before they reimburse lost income. The proof you’ll need depends on how you earn your money.
For employees, gather:
- Recent pay stubs and tax forms
- A letter from your employer verifying your role, pay rate, and missed days
- A doctor’s note confirming that your injuries kept you from working
For self-employed or freelance professionals, provide:
- Tax returns from the past 2–3 years
- Profit and loss statements
- Invoices, canceled contracts, or client correspondence
- Bank statements showing consistent deposits
Your doctor’s documentation is essential. It connects your injury to your inability to work and strengthens your claim. Without medical proof, insurers may argue that your time off was unrelated to the accident.
If you’re unsure what documents to collect or how to organize them, a New Orleans car accident lawyer familiar with Louisiana’s laws can help you understand what insurance companies look for and how to prepare a solid claim file.
How to Calculate Lost Wages
The calculation of lost wages depends on your pay structure. The goal is to show what you would have earned if the accident had not occurred.
- Hourly Workers: Multiply your hourly rate by the number of hours missed.
Example: $20 per hour x 40 hours missed = $800 in lost wages. - Salaried Employees: Divide your annual salary by 2,080 (average yearly work hours) to get your hourly rate, then multiply by hours missed.
Example: $52,000 ÷ 2,080 = $25/hour. Missing 40 hours equals $1,000 in lost income. - Commission or Bonus-Based Workers: Use an average of past months’ commissions or bonuses to estimate expected earnings.
- Self-Employed Workers: Compare past income trends before and after the accident using tax returns or business records.
According to the Insurance Research Council, nearly 40% of injury claimants miss work after a car accident, and more than 25% experience long-term income disruption.
Some claims may also include lost earning capacity when your injury permanently limits your ability to earn income in the future. In such cases, financial experts may help calculate projected losses.
Filing the Lost Wage Claim
Once your documentation is ready, you can begin the claims process.
- Notify the insurance company about the accident and mention that you plan to include a wage loss claim.
- Collect all required documents, including pay stubs, medical reports, and proof of employment.
- Submit your claim with supporting evidence. If the at-fault driver’s insurance company is responsible, file through their liability coverage.
- Keep track of deadlines. Louisiana’s statute of limitations for personal injury claims is typically one year from the accident date.
- Stay organized. Keeping digital and paper copies of every record helps prevent disputes later.
Common Challenges and Mistakes to Avoid
Many lost wage claims fail due to missing or inconsistent information.
- Not obtaining a doctor’s statement linking your injury to missed work
- Submitting incomplete pay records or missing tax forms
- Waiting too long to notify the insurance company
- Self-employed individuals failing to provide prior income proof
- Misunderstanding what insurance will or will not cover
Avoid these pitfalls by organizing all financial and medical evidence early. Consistency between your records and medical timeline strengthens your credibility.
Key Documents Required for Lost Wage Claims by Employment Type
|
Employment Type |
Essential Proof Documents |
Notes |
| Full-Time Employee | Pay stubs, W-2s, employer letter, doctor’s note | Verifies consistent pay and missed time |
| Part-Time/Hourly | Timecards, wage statements, medical proof | Demonstrates average work hours and earnings |
| Self-Employed | Tax returns, invoices, profit/loss statements | Shows earnings history for comparison |
| Freelancer/Contractor | 1099s, client contracts, bank deposits | Verifies ongoing work affected by injury |
FAQs
What qualifies as lost wages in a car accident claim?
Lost wages include any income you would have earned if the accident hadn’t happened, including salary, bonuses, commissions, and paid leave.
Can I claim lost wages if I’m self-employed or a freelancer?
Yes. Provide tax returns, invoices, and bank statements showing regular income before the accident and how it was affected.
How does Louisiana law determine responsibility for wage loss?
Under Article 2315, compensation depends on who caused the accident. Comparative fault may reduce recovery if both parties share blame.
What if my employer refuses to confirm my missed time?
Use pay records, attendance logs, and doctor’s notes as alternate proof to support your claim.
Are lost wages taxable when received from a settlement?
Yes. Lost wage payments are typically taxable because they replace income that would have been taxed.
Conclusion
Recovering lost wages after a car accident takes more than a simple claim form. You need clear documentation, consistent proof of income, and medical evidence linking your injuries to time off work. Louisiana law supports wage loss recovery under Civil Code Article 2315, but success depends on how well you prepare and present your claim.
If you’re struggling to organize proof or facing insurance delays, Alvendia, Kelly & Demarest Law Firm can guide you through the process and help protect your rights.
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In 2003, after being dissatisfied with the quality of legal care for victims of car accidents, Roderick ‘Rico’ Alvendia sought to establish a new firm focused on providing high-quality legal services to aid injured victims and their families. J. Bart Kelly, sharing Rico’s passion for upholding justice, joined the firm later that year, and established a partnership.
