Detailed answer — how to calculate lost wages

Lost wages are the money you would have earned but did not because of injury-related time away from work. To calculate them you need to (1) identify what counts as recoverable lost wages, (2) gather supporting documentation, and (3) compute the amount precisely. Below are the step-by-step methods for hourly, salaried, and self-employed workers, and for partial-day absences (like ER or PT visits).

Step 1 — Decide what to include

• Actual time missed from your job because of the ER visit, treatment, or medically required rest.
• Commute or travel time to and from medically required appointments, if that travel caused you to miss work hours.
• Overtime, commissions, tips, or bonuses you would have earned during the missed hours, when you can document them.
• Future lost earnings or diminished earning capacity only when a medical provider says the injury will affect your future work; this generally requires stronger proof.

Step 2 — Gather the documentation you need

Collect records that connect your missed work to the injury and prove how much income you lost. Essential items:

• Pay stubs and recent W-2s or 1099s.
• An employer statement verifying the dates and hours you missed and whether you used paid sick leave or vacation instead.
• Time sheets, punch-in/punch-out records, or payroll reports.
• ER record and PT appointment notes showing dates and times.
• Doctor’s note or medical records describing work restrictions and appointment necessity.
• Tax returns, invoices, bank deposits, and profit/loss statements for self-employed workers.

Step 3 — Calculation formulas and examples

Hourly employee

Formula: hourly rate × hours missed = lost wages.

Example: $20/hour. ER visit caused you to miss 8 hours (one full shift) and two PT visits of 2 hours each (including travel), so 8 + 2 + 2 = 12 hours missed total. Calculation: 12 × $20 = $240 lost wages.

Overtime, tips, and commissions

If you routinely earned overtime or tips during the missed hours, include them. Example: if you would have worked 4 overtime hours at time-and-a-half ($20 × 1.5 = $30/hr), add overtime pay: 4 × $30 = $120.

Salaried employee

Two common approaches:

1. Daily rate method: annual salary ÷ 260 (approximate workdays per year) = daily wage. Multiply by days missed.
2. Hourly-equivalent method: if you normally work set hours, divide salary by hours worked per year (salary ÷ (weeks × hours/week)) to get an hourly equivalent, then multiply by hours missed.

Example: $52,000/year. Daily: $52,000 ÷ 260 = $200/day. If you missed one day for ER and half a day for PT, lost wages = $200 + $100 = $300.

Self-employed / independent contractor

Use your recent profit-and-loss statements, invoices, bank deposits, or tax returns to show expected daily or hourly earnings. Compare earnings for similar weeks/months before the injury and for the missed time. Keep records of cancelled jobs or delayed projects caused by the appointments or recovery.

Partial-day absences, travel time, and recovery time

Calculate actual hours lost, not just full days. If a PT appointment takes 90 minutes plus 60 minutes travel and recovery, count the full time you could not work. Document start and end times on appointment records and employer confirmation.

Step 4 — Adjustments and what insurers may argue

• If you used paid leave (sick or vacation) rather than losing pay out-of-pocket, an insurer may argue you suffered no economic loss. Still preserve records — insurers and courts will look at whether your available paid leave was consumed and whether you can be compensated or reimbursed.
• Insurers often challenge estimates of future lost earnings or lost earning capacity. For future losses, you will generally need medical evidence and economic analysis.
• Mitigation: you should try to schedule appointments outside work hours where reasonable. If you did not, the insurer or a court may claim you failed to mitigate damages.

Step 5 — Presenting your calculation in a claim or demand

Put your calculation into a clear table and attach documentation. Typical demand format includes: date, employer verification, pay rate, hours missed, gross lost wages, payroll taxes (if asked), and a simple sum. Keep copies of everything.

Oregon resources and legal timing

Rules about personal injury claims, workers’ compensation, and damages can affect what you claim and how you prove wage loss. For general Oregon statutes and resources, see the Oregon Revised Statutes index: https://www.oregonlegislature.gov/bills_laws/Pages/ORS.aspx. If your injury is a workplace injury, the Oregon Workers’ Compensation Division has guidance at https://wcd.oregon.gov.

Because time limits and procedural rules may apply, do not delay assembling proof. If you plan to file a third-party claim against a driver or business, check the relevant statute of limitations in the Oregon Revised Statutes or consult an attorney promptly.

Example calculation — complete illustration

Hypothetical facts: You are hourly, $22/hr. You missed 6 hours for an ER visit (including travel) and two PT sessions of 1.5 hours each. You also missed one hour of shift-specific overtime you would have worked that week.

• Regular hours lost: 6 + 1.5 + 1.5 = 9 hours × $22 = $198
• Overtime lost: 1 hour × ($22 × 1.5) = $33
• Total lost wages = $198 + $33 = $231

Attach pay stubs showing $22/hr, employer signed statement verifying missed hours, and medical appointment records dated and timed.

Helpful Hints

• Start collecting documentation immediately: the earlier you gather pay stubs, employer verification, and medical records, the stronger your claim will be.
• Ask your employer for a written statement verifying the exact hours and dates missed and whether you used paid leave.
• Keep appointment confirmations, clinic intake forms that show arrival/departure times, and the provider’s notes about why each appointment was necessary.
• For salaried workers, clearly explain how you converted salary to an hourly or daily equivalent and keep a simple calculation worksheet.
• If you are self-employed, prepare profit-and-loss reports for the weeks affected and evidence of canceled work.
• Document travel time — insurers sometimes overlook travel and recovery time unless you show it clearly.
• If an insurer offers to reimburse your employer for paid leave rather than paying you directly, get that agreement in writing and confirm how you’ll be reimbursed for consumed PTO.
• If the other party’s insurer questions your math, calmly present a dated, annotated packet with pay records, employer verification, and appointment proofs.
• Consider consulting a lawyer when lost wages are substantial, when your employer disputes hours missed, or when the insurer denies responsibility. Legal advice helps when future earning capacity is at issue.