Which Types of Income Can Be Included When Calculating Lost Wages in Montana?

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Disclaimer: This article is for educational purposes and does not constitute legal advice. Consult a qualified Montana attorney for guidance on your specific situation.

Detailed Answer

Under Montana law, lost wages form part of your economic damages in a personal injury claim. You may recover compensation for the income you actually lost and the income you expect to lose in the future. See Montana Code Annotated § 27-1-316 for guidance on measuring damages.

The following types of income typically qualify when calculating lost wages:

  • Base Salary or Hourly Wages: Your regular pay for standard work hours.
  • Overtime Pay: Premium wages earned for hours worked beyond the normal workweek.
  • Bonuses and Commissions: Performance-based pay tied to sales, production, or achievement metrics.
  • Self-Employment and Business Income: Net profits from your own business, freelancing, or independent contracting.
  • Tips and Gratuities: Service industry earnings you receive directly from customers.
  • Fringe Benefits: Employer-paid contributions such as health insurance, retirement plan contributions, vacation or sick-leave payouts. While not direct wages, these benefits may factor into your lost earning capacity.
  • Future Raises and Promotions: Anticipated salary increases or higher‐paying positions you likely would have obtained absent the injury.

Court-approved valuation relies on reliable documentation such as pay stubs, W-2 forms, tax returns, employment contracts, and expert testimony by vocational economists or financial professionals.

Relevant statute:
Mont. Code Ann. § 27-1-316: Measure of damages in personal actions

Helpful Hints

  • Collect detailed payroll records: keep pay stubs, overtime logs, and time sheets.
  • Secure tax documentation: gather W-2s, 1099s, and personal tax returns for multiple years.
  • Document fringe benefits: request employer benefit summaries or plan documents.
  • Track self-employment earnings: maintain profit-and-loss statements and business tax returns.
  • Use a loss diary: record missed workdays, hours lost, and communications with your employer.
  • Engage experts early: vocational or economic experts can project both current and future losses.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.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