Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
Under Texas law, “lost wages” refers to income you would have earned but could not because of an injury or illness. The goal is to make you whole by compensating the full range of earnings you lost. Texas statutes and case law recognize several types of income in calculating lost wages:
- Base salary or hourly wages: Your regular earnings based on salary or hourly rate, as documented on pay stubs or employment records.
- Overtime pay and shift differential: Extra compensation for hours worked beyond the standard workweek and for night or weekend shifts.
- Bonuses and commissions: Performance-based pay you would have earned if you had worked, including sales commissions and discretionary or contractual bonuses.
- Tips and gratuities: Earnings from tips if you work in a service industry and can show a historical pattern of tip income.
- Vacation, holiday, and paid leave accrual: Paid time off benefits you would have otherwise used.
- Self-employment net earnings: If you are self-employed, your net profits as shown on tax returns or business records.
- Fringe benefits: Non-cash benefits such as employer-paid health insurance contributions, retirement plan contributions, or car allowances, when they form a regular part of your compensation.
In a workers’ compensation claim, the Texas Labor Code provides specific guidance on computing income benefits. For example, Texas Labor Code §408.051 explains that “income benefits” are based on two-thirds of your average weekly wage, which in turn is defined in §408.055. The average weekly wage calculation may include overtime, commissions, and other earnings to properly reflect your normal income stream. (Texas Labor Code §408.051, §408.055.)
In a personal injury lawsuit outside of workers’ compensation, Texas courts allow recovery of past and future lost wages as economic damages. You must prove the amount with reasonable certainty using payroll records, tax returns, employment contracts, expert testimony, or other credible evidence.
Helpful Hints
- Gather pay stubs, W-2s, tax returns, and employment agreements to document your income history.
- Track overtime, tips, commissions, and bonuses separately to demonstrate variability in your earnings.
- Keep records of sick days, vacation days, and paid leave you could not use because of your injury.
- For self-employed workers, maintain organized profit-and-loss statements and tax schedules (Schedule C or equivalent).
- Consider hiring a vocational or economic expert if your income streams are complex or highly variable.