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

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.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

Disclaimer: This article is for educational purposes only and does not constitute legal advice.

Detailed Answer

Under New York law, courts award lost wages that reflect the full value of earnings and benefits the injured party would have received but for the injury. New York’s Civil Practice Law & Rules sections CPLR 4541 (past lost earnings) and CPLR 4542 (future lost earnings) guide what income types qualify.

The following categories typically qualify:

  • Base Salary or Hourly Wages: Regular pay earned per hour or salary.
  • Overtime Pay: Compensation for hours worked beyond the standard workweek.
  • Bonuses and Commissions: Incentive-based pay tied to performance, sales, or productivity.
  • Vacation, Sick and Holiday Pay: Paid leave the employee forfeits due to injury.
  • Fringe Benefits: Employer-paid contributions for health, dental, life insurance, pension and retirement plans. (CPLR 4541(d), 4542(d))
  • Retirement Contributions: Employer matches or profit-sharing contributions to 401(k) or pension plans.
  • Stock Options and Restricted Stock: Value of equity-based compensation forfeited during recovery.
  • Shift Differentials and On-Call Pay: Extra pay for nights, weekends or availability premiums.
  • Tips and Gratuities: Income from customer gratuities in service industries.
  • Self-Employment Income: Net earnings of a business owner, including profit distributions, minus business expenses.
  • Deferred Compensation: Any pay deferred to future periods that the employee would have earned.

To recover these losses, you must prove the amount with documentation such as pay stubs, W-2 forms, tax returns and employment contracts. Courts may also consider testimony from vocational experts and accountants to project future income losses.

Helpful Hints

  • Gather pay stubs, W-2s and tax returns for at least two years before injury.
  • Request a detailed benefits summary from your HR department.
  • Keep records of overtime, bonuses and commission calculations.
  • Obtain expert analysis for business owners or complex income streams.
  • Document any changes in work schedule or pay rate post-injury.
  • Consult a qualified attorney to assess your potential claim.

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.