Detailed Answer
Under Minnesota law, “lost wages” refer to the income you would have earned but for an injury or work‐related illness. Courts and insurers look beyond simple hourly or salary pay. You can include many forms of compensation so you recover the full value of what you lost.
1. Base Earnings
Include your regular hourly pay or salary. If you’re paid an annual salary, divide your yearly pay by 52 to calculate your weekly amount.
2. Overtime, Shift Differentials, & Premium Pay
Overtime hours, weekend or night-shift premiums, holiday pay, and any other premium rates count. Minnesota workers’ compensation law defines average weekly wage to include overtime and other premiums (Minn. Stat. § 176.011, subd. 16).
3. Commissions, Bonuses, & Tips
If your employment agreement or company policy provides commissions, discretionary or nondiscretionary bonuses, or tips, you can factor them into your lost‐wage calculation. Use the average of these earnings over a representative period before your injury.
4. Fringe Benefits
Employers often offer non‐cash compensation—such as health insurance contributions, retirement plan contributions, and paid leave. While fringe benefits aren’t “wages,” Minnesota law allows you to recover their monetary value when they were part of your total compensation package.
5. Self-Employment & Business Income
If you own a business or work as an independent contractor, lost profits or fees count as lost wages. You’ll need tax returns, ledgers, and expert testimony to establish what you would have earned.
6. Future Loss of Earnings & Earning Capacity
For long-term or permanent injuries, you can claim future wage losses. This includes raises, promotions, and lost retirement contributions you reasonably expected. Courts often rely on vocational experts and actuarial data.
Excluded Income
Passive income—like dividends, interest, and rental income—is generally not included. Additionally, social benefits (e.g., Social Security Disability or unemployment insurance) are subtracted if and when you receive them.
Helpful Hints
- Gather pay stubs, tax returns, and employer pay policies.
- Keep a detailed calendar of work hours and shifts missed.
- Document fringe benefits and employer contributions to benefits.
- Consult an economic expert for complex or self-employment claims.
- Account for taxes and mandatory deductions to show your net losses.
- Preserve emails or memos about expected raises or bonuses.
Disclaimer: This article is for general educational purposes and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.