Partner at AKD Lawyers
Practice Areas: Personal Injury
When you’re hurt in a car accident, the impact often goes beyond medical bills and vehicle repairs. One of the most stressful parts is losing income because you can’t work. Whether you’re out for a few days or months, recovering lost wages is essential to getting your life back on track. But how exactly do you claim those wages—and prove them to the insurance company?
In Louisiana, the law allows injured individuals to claim compensation for wages lost due to someone else’s negligence. But it’s not as simple as saying, “I missed work.” You need proof, and the process varies depending on how you’re employed.
This guide explains how lost wages are calculated in Louisiana car accident claims, what counts as lost income, how self-employed workers can prove it, and the documentation you’ll need to support your claim.
What Counts as Lost Wages After a Car Accident?
Lost wages refer to the income you would have earned if the accident had not happened. It’s more than just your hourly or salaried pay. Any form of income or benefits lost because you couldn’t work should be considered when calculating lost wages.
This includes:
- Regular hourly or salaried pay
- Overtime that you regularly earn
- Commissions and bonuses
- Missed promotions or scheduled raises
- Employer-paid benefits (like paid time off, sick leave, or even 401k contributions)
Even if you used sick days or vacation time while recovering from the accident, the value of those lost benefits should be factored into your claim.
Even if you used sick leave or PTO, the value of that time should be included in your lost wage claim — it was time you were forced to spend due to the accident.
Louisiana Law on Lost Wages After a Car Accident
Under Louisiana law, injured individuals have the right to pursue compensation for financial losses caused by someone else’s negligence. That includes your lost wages, both current and future.
Under Louisiana Civil Code Article 2315, individuals injured due to another’s fault are entitled to compensation, including lost earnings.
This means if another driver caused the crash and your injuries kept you from working, you have a legal right to recover the income you lost during your recovery. In more serious cases, where the injury affects your long-term ability to earn, you may also have the right to claim future lost income or lost earning potential.
How to Prove Lost Wages After a Car Accident
Proving lost wages is about more than just saying you missed work. You need solid documentation to support your claim. The type of documents required will depend on your employment situation, but most claims include:
- Pay stubs or wage statements showing your regular income
- Tax returns (especially for self-employed individuals)
- A letter from your employer confirming the time you missed and your typical hours or salary
- Doctor’s note or medical records showing that your injuries prevented you from working
For employees, the proof is pretty straightforward. You’ll want to provide your recent pay stubs and an employer’s note verifying your missed days and job duties.
Self-employed individuals face more of a challenge. Because there isn’t a paycheck to refer to, you’ll need to provide:
- Prior tax returns (often the last 2–3 years)
- Profit and loss statements
- Client invoices
- Bank statements showing regular deposits
- Contracts for ongoing or upcoming work
Self-employed individuals often face stricter scrutiny and should prepare thorough financial documentation to support their claims.
Steps to Claim Lost Wages from a Car Accident
If you believe you’re entitled to lost wage compensation, here’s what the process generally looks like:
Step 1: Report the Accident
Notify your insurance company right away. If another driver was at fault, file a third-party claim with their insurance provider.
Step 2: Seek Medical Treatment
See a doctor immediately. Your medical records will serve as the foundation for proving you were unable to work.
Step 3: Collect Documentation
Start gathering the documents we discussed earlier—pay stubs, tax returns, employer letters, and medical proof.
Step 4: File the Claim
If the insurer refuses to pay, submit all documentation to the appropriate insurance company or file a personal injury lawsuit.
Step 5: Consider Legal Help
Having an attorney can make the process smoother, especially if you’re self-employed or your claim is denied.
Be aware of deadlines. Every state has its statute of limitations for personal injury claims, which is usually between one and three years from the date of the accident.
In many states, Personal Injury Protection (PIP) insurance may cover lost wages up to a specific limit, even if you were at fault.
How to Calculate Lost Wages in Louisiana
The method for calculating lost wages depends on how you’re paid. Here’s how to approach it:
Hourly Employees
If you work hourly, your calculation is based on your regular hourly rate and the number of hours you missed due to the injury.
For example, if you make $25 per hour and missed 25 hours of work, your lost wage claim would be $625.
Salaried Employees
For salaried workers, divide your annual salary by the number of work hours in a year (usually 2,080) to get your hourly rate. Multiply that rate by the hours you missed.
If you earn $52,000 per year and miss a week (40 hours), your claim would be approximately $1,000.
Commission or Bonus-Based Employees
For those who earn commissions or bonuses regularly, use average earnings over the past few months to determine your expected income. You may also need employer documentation showing scheduled bonuses or lost opportunities.
PTO or Paid Leave
Even if your employer paid you while you were out, the value of that benefit is still a loss. You were forced to use time off because of the accident and can include that value in your claim.
According to the Insurance Research Council, nearly 40% of injury claimants miss work due to auto accidents, and over 25% report long-term income loss.
Tax Implications
Lost wage compensation may be subject to taxes depending on how it is paid or awarded. It’s always a good idea to consult a tax advisor when filing a claim or negotiating a settlement.
According to the Insurance Research Council, approximately one in eight drivers in the U.S. is uninsured, which can complicate wage reimbursement without legal support.
Challenges in Proving Lost Wages for Self-Employed Individuals
If you’re self-employed, recovering lost wages can be trickier. Insurance companies often require more extensive proof since there is no fixed salary or timesheet.
You’ll need to establish a clear earnings history and show how your injuries disrupted your usual workflow. Some helpful documents include:
- Annual tax filings (especially Schedule C)
- Invoices and contracts that had to be canceled or delayed
- Profit and loss statements
- Bank statements showing income trends
In some cases, it might help to hire a financial expert or accountant to help project your lost income more accurately.
Can You Recover Lost Wages Through Insurance or Court?
There are generally two main ways to recover lost wages:
1. Insurance Claim
If your state offers Personal Injury Protection (PIP), it may cover a portion of your lost wages, regardless of who caused the accident. You can also file a claim with the at-fault driver’s insurance under their liability coverage.
2. Personal Injury Lawsuit
If the insurance coverage is insufficient or denied, you can file a lawsuit to recover full compensation. This is often the best option for self-employed workers or those with significant losses.
An attorney can help navigate complex insurance policies and ensure that all damages, including lost wages, are correctly calculated.
Table: Key Documents Required to Claim Lost Wages by Employment Type
| Employment Type | Essential Documents for Wage Claim |
| Full-time Employee | Pay stubs, W-2s, employer letter, doctor’s note |
| Part-time/Hourly | Work schedule, timecards, wage statements |
| Self-Employed | 1099s, tax returns, invoices, client contracts, profit/loss statements |
| Contractor/Freelancer | Bank statements, gig app records, previous project invoices |
Frequently Asked Questions
What qualifies as lost wages after a car accident?
Lost wages include any income you missed due to accident-related injuries, such as salary, hourly pay, bonuses, or tips you would have earned if you weren’t injured.
Can I claim lost wages if I’m self-employed?
Yes, self-employed individuals can claim lost wages, but they need tax records, invoices, contracts, and bank statements to prove the amount lost.
Do I need a lawyer to recover lost wages from a car accident?
You can file a claim on your own, but a lawyer can help make sure all necessary documentation is included and improve your chances of full compensation.
What if the insurance company denies my lost wage claim?
If your claim is denied, you can appeal the decision or file a personal injury lawsuit to recover the lost income through court.
How long do I have to claim lost wages after a car accident?
Each state sets its time limit, usually between one and three years. It’s best to act quickly to avoid missing your chance to file.
Will taxes affect my lost wages compensation?
Yes, compensation for lost wages is generally considered taxable income, unlike pain and suffering damages, which are usually tax-exempt.
Conclusion
Missing work after a car accident can put you under severe financial pressure. Whether you work a 9-to-5 job or run your own business, you deserve to be compensated for the income you lost while recovering from your injuries.
To make a strong claim, you’ll need the proper documents, medical proof, and a clear explanation of your earnings. If you’re self-employed, that may take more work, but it’s absolutely possible.
Understanding the process is the first step toward getting the compensation you need. And if things get complicated—or you run into roadblocks with the insurance company—having a skilled legal team can make all the difference.
If you’ve lost income because of a car accident and need help proving your claim, the team at AKD LAW is here to support you every step of the way.
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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.
