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

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Detailed Answer

Under Massachusetts law, you can recover lost wages as economic damages in personal injury, wrongful termination, discrimination and workers’ compensation claims. While no single statute defines “lost wages,” courts and practitioners typically include several categories of income. For work-related injuries, the Workers’ Compensation Act (Mass. Gen. Laws ch. 152) provides guidelines on wage loss benefits.

  • Base Salary and Hourly Wages: Your regular pre-injury salary or hourly rate. This includes straight time pay for hours you would have worked.
  • Overtime Pay: Compensation for hours worked beyond the standard workweek. Massachusetts law requires overtime at 1.5× regular rate for hours over 40 (Mass. Gen. Laws ch. 151).
  • Bonuses and Commissions: Incentive-based earnings tied to performance or sales, if you regularly received them.
  • Tips and Service Charges: Gratuities you customarily earned, provided you can document them.
  • Paid Time Off and Leave Benefits: Unused vacation, sick leave or paid personal days that you would have accrued or been entitled to use.
  • Fringe Benefits: Employer-paid health insurance, retirement contributions, pension, profit-sharing, stock options and similar perks, prorated for the period of lost work.
  • Self-Employment Income: Net earnings after business expenses, calculated using tax returns, profit-and-loss statements and expert testimony if needed.
  • Future Lost Earnings and Earning Capacity: Projected decline in your ability to earn, based on your career trajectory, age, education and vocational assessments.

Helpful Hints

  1. Gather pay stubs, W-2s, 1099s and tax returns to document historical earnings.
  2. Use a vocational expert for complex future loss and earning capacity claims.
  3. Calculate gross income, then account for mitigation (e.g., alternate work).
  4. Include fringe benefits at their current cost to the employer, not your out-of-pocket expense.
  5. Keep a detailed diary of missed hours and medical appointments.
  6. Consult an employment or personal injury attorney early to preserve evidence and deadlines.

Disclaimer: This article provides general information only. It does not constitute legal advice. Consult a qualified attorney to address your specific situation.

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.