Detailed Answer: Step-by-step guide to calculating lost wages

When you miss work because of an emergency room visit or physical therapy (PT) appointments following a minor neck or back injury, the money you lose can often be recovered as “lost wages” in an insurance claim, workplace claim, or personal injury case. Below is a clear process you can follow to calculate your lost wages, what counts, and how New Mexico law treats wage-loss in common claim types.

1) Identify the type of claim

Which rules apply depends on the context:

• Work-related injury: If the injury happened at work or in the course of employment, New Mexico’s Workers’ Compensation system usually governs wage-loss benefits. See the New Mexico Workers’ Compensation Administration for benefit rules: https://workerscomp.nm.gov.
• Car crash or other third-party tort: If someone else caused the injury (car accident, slip-and-fall, etc.), you typically claim lost wages as economic damages from the at-fault party or their insurer under general New Mexico tort law.
• Short-term or non-covered events: If neither workers’ comp nor a third-party insurer applies, lost wages may be pursued in a civil suit. Statutes of limitations and proof requirements vary—see the New Mexico Legislature’s statutes and consult an attorney: https://nmlegis.gov/.

2) Gather the proof you will need

Documentation is essential. Collect:

• Pay stubs or wage statements showing hourly rate, salary, overtime, tips, commissions, and pay periods.
• Employer confirmation (a signed note or email) stating the hours/days you missed and whether you were paid (vacation/sick) or unpaid.
• Timecard records, punch-in/out logs, or payroll reports.
• Medical records showing dates and times of ER visits, discharge notes, PT appointments, and provider billing statements.
• Calendar entries, appointment confirmations, and travel logs showing time spent traveling to/from appointments if you plan to claim travel time as lost work time.
• Income tax returns or 1099s if you are self-employed—these help prove lost profits and customary earnings.

3) Decide what counts as “lost wages”

Common components:

• Lost hourly wages or salary: Hours you were scheduled to work but missed because of treatment or ER care.
• Overtime and usual bonuses: If you missed overtime or bonuses you would have earned during missed shifts.
• Tips and commissions: If these are regular and can be documented.
• Self-employed income: Lost net profit or reasonable value of your lost work time—document with tax returns, invoices, contracts.
• Travel and waiting time: Time spent traveling to appointments and waiting for care can sometimes be recoverable if it caused you to miss work time.

4) The math: how to calculate lost wages

Use straightforward arithmetic. Always start with gross (pre-tax) earnings because courts and insurers generally compare gross amounts.

For hourly employees:

Hourly rate × hours missed = lost wages

Include overtime at the applicable overtime rate.

Example (hourly worker):

– Hourly rate: $18.00

– Missed 8 hours for an ER visit and 3 PT appointments of 1 hour each during work hours (3 hours). Total missed hours = 11.

– Lost wages = $18.00 × 11 = $198.00

For salaried employees paid weekly/biweekly/monthly:

Convert salary to an hourly equivalent (Salary ÷ regular weekly hours) then multiply by missed hours, or compute daily pay and multiply by missed days.

Example (salaried worker):

– Salary: $52,000/year. Assume 40-hr week.

– Hourly equivalent = $52,000 ÷ 2080 ≈ $25/hour.

– Missed 4 hours = $25 × 4 = $100.

For self-employed or independent contractors:

Document average weekly or monthly income and compute lost profits or value of time. Common methods:

• Average earnings method: (Total income over prior period ÷ number of work units) × missed units.
• Project lost business by showing canceled jobs, fees, invoices, or estimates from clients.

5) Include related economic losses when appropriate

In many cases you may recover other economic losses closely tied to missed work:

• Out-of-pocket travel costs for medical care (mileage, parking, public transit).
• Childcare or eldercare costs you had to pay because you were in appointments or recovering.
• Costs to hire someone to do business tasks you normally perform, if documented.

6) Factor in benefits, sick pay, and wage replacement

If your employer paid you sick pay, vacation, or short-term disability for missed time, the insurer or employer may contend you didn’t actually lose wages. Keep careful records:

• If you were fully paid by employer benefits and you did not suffer an out-of-pocket loss, the amount you can claim as “lost wages” may be reduced.
• If benefits were paid but you had to use limited sick or vacation time (a non-recoverable loss of those benefits), many claims still allow recovery for the value of that lost leave, subject to the law and the insurer’s position.
• Workers’ Compensation and some insurance policies replace wages on a statutory or policy basis—those rules differ from private settlement calculations.

7) Document the timeline and show causation

Two facts you must prove for a successful claim: (1) you missed work, and (2) the missed work was caused by the injury/treatment. Use a timeline showing:

1. Date/time of injury.
2. Date/time of ER visit and length of visit; attach ER discharge summary.
3. Dates/times of PT appointments; include provider notes showing treatment and necessity.
4. Employer communications about missed shifts and pay deductions or benefit usage.

8) Tax and net vs. gross considerations

Most settlements and jury awards for lost wages are stated in gross terms. The taxability depends on the nature of the award (e.g., wages typically taxable, certain compensatory damages may not be). Consult a tax professional for the tax effect of a recovery.

9) Time limits and the need to act

New Mexico has deadlines for filing claims. For workplace claims, follow workers’ comp reporting rules. For third-party personal injury, statutes of limitation apply. For general reference and to find relevant statutes, see the New Mexico Legislature site: https://nmlegis.gov/. Because time limits vary by claim type and facts, consult an attorney promptly.

10) When to talk to an attorney

Consider consulting a New Mexico personal injury or workers’ compensation attorney if:

• The insurer disputes the amount or causation.
• You have significant or ongoing symptoms that may reduce future earning capacity.
• You are self-employed and need help proving lost profits.
• The potential recovery is substantial compared to the cost of representation.

Helpful Hints

• Track everything as it happens. Put appointments and time-off in a calendar, save all confirmation emails, and take screenshots of employer schedules.
• Ask your employer for a written confirmation of missed hours and whether you were paid. A short signed note can be very persuasive.
• Keep gross-pay documentation (pay stubs, W-2s, 1099s) to show your normal earnings baseline.
• If you are self-employed, keep invoices, client emails, and bank records that show lost revenue tied to missed appointments.
• Include travel time if it caused you to miss paid work—document mileage or transit receipts.
• Don’t sign settlement papers until you understand whether the offer fairly compensates you for all lost wages and related costs; consider getting legal advice before settling.
• If your claim involves a workplace injury and you’re unsure whether to file with workers’ comp or against a third party, contact the New Mexico Workers’ Compensation Administration: https://workerscomp.nm.gov.
• For questions about time limits and statute language, consult the New Mexico Legislature’s statutes: https://nmlegis.gov/.