Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified South Dakota attorney regarding your specific situation.
Detailed Answer
When an injury or incident prevents you from working, South Dakota law allows you to recover wages you actually lost. Under SDCL 21-1-1, courts base lost wage awards on the income you would have earned “but for” the injury. You must prove the amount and duration of your income loss with reasonable certainty.
1. Regular Earnings: Include your base salary or hourly wages. Use pay stubs, time sheets or employer records to show your standard rate and hours you missed.
2. Overtime Pay: If you regularly earned overtime, you can include the additional pay you would have received. Demonstrate a consistent overtime history over several pay periods.
3. Commissions and Bonuses: Commissioned sales professionals and employees earning performance bonuses may claim anticipated commissions or bonuses. Show past year figures to support a reasonable expectation of continued earnings.
4. Paid Time Off and Benefits: Courts may consider lost vacation pay, sick leave payouts and other paid time off conversions. You can also include employer contributions to retirement plans and health insurance premiums tied to your employment.
5. Self-Employment Income: Self-employed individuals recover net business profits lost due to the injury. Calculate gross receipts minus ordinary business expenses, using tax returns, invoices and accounting records.
6. Future Earning Capacity: For long-term disabilities, you may recover lost future wages. Expert testimony—such as vocational and economic experts—can estimate your diminished earning capacity over your working life.
To calculate these figures, gather documentation such as W-2 forms, tax returns, employer letters and expert reports. Present consistent records to establish both past and future income losses with reasonable certainty.
For the full text of SDCL 21-1-1, visit https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&Statute=21-1-1.
Helpful Hints
- Collect multiple years of tax returns or pay stubs to show consistent earnings.
- Request an employer letter confirming regular hours, overtime and benefits.
- Keep records of paid time off, sick leave balances and benefit contributions.
- Work with a vocational expert when estimating future earning losses.
- Use self-employment ledgers or an accountant’s summary to support net profits.
- Maintain organized documentation to strengthen your lost wage claim.