Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer on Types of Income Included in Lost Wages
Under Indiana law, a person who suffers injury or damage due to another’s misconduct may recover lost wages as part of economic damages. The measure of damages in personal injury and wrongful death claims includes fair compensation for lost earning capacity and actual lost income. See Indiana Code § 34-51-2-1.
The types of income you can include when calculating lost wages generally cover:
- Regular wages or salary: Base pay, whether hourly, salaried, or contract-based.
- Overtime pay: Any premiums paid for overtime hours.
- Bonuses and commissions: Incentive payments tied to performance or sales.
- Tips and gratuities: Documented service charges or tips from customers.
- Self-employment earnings: Net income from freelance or contract work.
- Profit distributions: Payments from ownership interests in businesses.
- Fringe benefits: Contributions toward health insurance, retirement plans, and other employer-provided benefits.
- Paid leave: Accrued vacation, sick leave, and personal days that were lost due to the injury.
Courts will require documentation supporting each category, such as pay stubs, tax returns, employment contracts, and company benefit statements. Expert testimony from economists or vocational specialists may be necessary to project future lost earning capacity, especially for long-term or permanent injuries.
Helpful Hints for Calculating Lost Wages
- Collect all pay stubs and W-2 forms from the period before and after the injury.
- Request detailed benefit statements from your employer showing health premiums and retirement contributions.
- Track self-employment income with profit-and-loss statements and tax returns.
- Document any changes in employment status, such as demotions or reduced hours.
- Consider hiring an economic expert if you claim future lost earning capacity.
- Keep a detailed calendar of days missed from work and any partial days worked.
- Review company policies on paid leave to include unused vacation or sick time.
By gathering thorough documentation and understanding what counts as “income” under Indiana law, you can build a solid basis for your lost wage claim.