When you suffer an injury or illness that keeps you from working, you may recover compensation for lost wages. Under Wisconsin law, “lost wages” or “loss of earning capacity” can include a variety of income types and benefits. This article explains which income sources are recoverable and how to document them.
Detailed Answer
Understanding Lost Wages in Wisconsin
“Lost wages” refers to the actual earnings you lose because you cannot perform your job duties. In personal injury claims, Wisconsin law allows recovery of economic damages, including past and future lost wages and benefits. In workers’ compensation cases, Wisconsin defines “average earnings” under Wis. Stat. § 102.04(1) to calculate wage‐loss benefits. See Wis. Stat. § 102.04(1): https://docs.legis.wisconsin.gov/statutes/statutes/102/04/1.
Types of Income Recoverable in Personal Injury Claims
- Regular Salary and Hourly Wages: Base pay for hours you would have worked.
- Overtime and Shift Differentials: Premium pay for extra hours or undesirable shifts.
- Commissions and Bonuses: Performance-based earnings tied to sales or productivity.
- Tips and Gratuities: Service industry tips you would have earned.
- Vacation, Sick Leave and PTO: Value of paid time off you could not use.
- Self‐Employment or Contract Income: Net business profits after ordinary expenses.
- Retirement or Pension Contributions: Employer contributions to 401(k), pension plans or profit-sharing.
- Other Fringe Benefits: Health insurance premiums, stock options, vehicle allowances.
Workers’ Compensation Context
Under Wisconsin’s workers’ compensation law, “average earnings” include many of the same categories. Wis. Stat. § 102.61 details the benefit calculation. See Wis. Stat. § 102.61: https://docs.legis.wisconsin.gov/statutes/statutes/102/61. Typical inclusions are:
- Hourly wages or salary
- Overtime, holiday and shift premiums
- Commissions, piecework and bonuses
- Allowances (housing, meals) regularly provided by the employer
- Tips when reliably reported and taxable
Helpful Hints
- Keep detailed pay records—pay stubs, W-2s or profit-and-loss statements.
- Obtain employer statements quantifying your unused vacation or sick leave.
- Gather business records and tax returns if you are self-employed.
- Request written confirmation of employer contributions to retirement plans and benefits.
- Get a medical prognosis to estimate any future work limitations.
- Consult an attorney to accurately project future lost earning capacity.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. To address your specific situation under Wisconsin law, consult a qualified attorney.