Which types of income can be included when calculating lost wages in North Dakota?

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Disclaimer: This article provides general information and does not constitute legal advice.

Detailed Answer

Under North Dakota law, an injured person may recover lost wages as part of compensatory damages (see NDCC 65-05.1-02). Lost wages cover the earnings and work‐related benefits the claimant would have earned but for the injury. Key income types typically include:

  • Base salary or hourly pay: Regular earnings documented by pay stubs or employer records.
  • Overtime compensation: Premium rates for hours worked beyond the standard workweek.
  • Bonuses and incentive pay: Both discretionary and nondiscretionary bonuses tied to performance.
  • Commissions: Sales-based earnings paid on top of base wages.
  • Tips and service charges: Income commonly received in service industries.
  • Paid leave benefits: Vacation, sick leave or holiday pay that would have accrued or been used.
  • Fringe benefits: Employer contributions to health insurance, retirement plans, profit‐sharing, stock options and similar benefits.
  • Self-employment income: Net business profits after ordinary and necessary expenses, as shown on tax returns.

Courts calculate lost wages by examining historical earnings records. When income varies, an average over a representative period may determine fair compensation.

Helpful Hints

  • Collect pay stubs, W-2s and payroll summaries covering the year before your injury.
  • Obtain employer statements confirming policies on overtime, bonuses and paid leave.
  • For tip-dependent roles, use restaurant or service records to establish average earnings.
  • Hire an accountant to prepare a detailed profit-and-loss statement if you’re self-employed.
  • Track any changes in your work schedule or compensation plan after the injury.
  • Speak with a local attorney promptly to comply with North Dakota’s statute of limitations and filing requirements.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.