Detailed Answer
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Under Tennessee law, injured plaintiffs can recover economic damages for lost wages in personal injury and other civil cases. Tennessee Code Annotated Title 29, Chapter 39 outlines general rules for damages (T.C.A. § 29-39-101 et seq.). Economic damages include both past and future wage losses. To calculate lost wages, you compare what you actually earned (or could have earned) without the injury against your earnings after the injury.
Common types of income included when calculating lost wages in Tennessee are:
- Regular Salary or Hourly Pay: Base wages or salary you would have earned during the recovery period.
- Overtime Pay: Compensation for hours worked beyond your standard schedule, when you regularly earned overtime before the injury.
- Bonuses and Commissions: Performance-based earnings you established a pattern of receiving prior to your injury.
- Vacation, Sick and Paid Time Off (PTO): Accrued paid leave you were unable to use because of your injury.
- Fringe Benefits: Employer contributions to retirement plans, health insurance, profit-sharing, and other benefits tied to your compensation package.
- Self-Employment Income: Net profits from a business you own or operate, usually shown on tax returns and financial statements.
- Tips and Gratuities: Income from customer tips if they formed a regular part of your earnings.
- Stock Options or Equity Distributions: Realizable value of shares or ownership interests you lost the opportunity to vest in or sell.
For future lost wages, courts consider your vocational history, age, skill set and earning capacity. You may need a vocational expert or economist to project these losses accurately. Tennessee courts generally allow recovery for both actual wages already lost and anticipated losses until you reach retirement age or your capacity to earn returns to pre-injury levels.
Helpful Hints
- Keep detailed records: Save pay stubs, W-2s, tax returns and bank statements.
- Document your work schedule: Note hours you would have worked, including overtime shifts.
- Track benefits: Confirm employer contributions to retirement and insurance plans.
- Retain expert help: A vocational expert or economist can strengthen your future lost wage claim.
- Consult an attorney early: A lawyer can advise on admissible evidence and Tennessee damage caps.
- Understand caps: Tennessee caps noneconomic damages, but there is no statutory cap on economic damages like lost wages (T.C.A. § 29-39-102(b)(1)).
- Be realistic: Future earnings projections must rest on reasonable probabilities, not speculation.