Which Types of Income Count as Lost Wages in Connecticut?

Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.

Detailed Answer

Under Connecticut law, when you claim lost wages as damages in a personal injury or employment dispute, you may recover more than just your base salary. Damages for lost earnings generally cover the full economic loss you sustain—from the moment of injury or wrongful act until you return to work (or reach maximum recovery).

Statutory Definition of “Wages”

Connecticut General Statutes § 31-71a defines “wages” broadly. It includes:

• Base pay (hourly or salary)
• Overtime premiums
• Commissions and piece-rate pay
• Bonuses and incentive compensation
• Vacation, holiday, sick and personal leave pay
• Severance pay
• Allowances (e.g., for meals or lodging)

Link: Conn. Gen. Stat. § 31-71a.

Additional Elements of Lost Earnings

In addition to statutory “wages,” courts often allow recovery for:

• Employee Benefits – Employer contributions to retirement plans, health insurance premiums, life and disability policies.
• Fringe Benefits – Company-provided car allowances, stock options, tuition reimbursement.
• Self-Employment Income – Net profits if you run your own business, after subtracting reasonable business expenses.
• Future Lost Earnings – If your injury causes permanent impairment, you can seek damages for diminished earning capacity over your expected work life.

Calculating Net vs. Gross Loss

Connecticut juries calculate lost wages based on gross pre-tax income, not take-home pay. You do not deduct personal living expenses or taxes. However, if you receive any unemployment or disability benefits after the accident, the court may offset those amounts against your gross loss.

Proof and Documentation

To support a lost-wage claim, gather:

• Pay stubs and W-2 forms showing hours, salary, bonuses, commissions and overtime.
• Employer records for accrued vacation, sick leave and fringe benefits.
• Tax returns and profit-and-loss statements if self-employed.
• Expert testimony on future earnings and vocational impairment, if applicable.

Helpful Hints

• Track all time missed and gather pay records promptly.
• Don’t overlook non-monetary benefits that have real economic value.
• Consult a vocational expert to estimate future earning capacity.
• Keep a detailed journal of work restrictions and recovery milestones.
• Review Connecticut Jury Instructions on Lost Earnings for guidance on how juries assess damages.