Types of Income Included in Vermont Lost Wage Calculations
Disclaimer: This information is provided for general informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice regarding your situation.
Detailed Answer
Under Vermont law, when calculating lost wages—whether in a personal injury lawsuit or a workers’ compensation claim—you may include various forms of income that reflect your earning capacity before your injury or illness. Lost wages cover both economic losses you suffer due to missed work and certain employment benefits tied to your compensation.
1. Base Salary and Hourly Wages
Your regular pay—whether salaried or hourly—is the foundation of any lost wage claim. Use your gross earnings (before taxes and deductions) as documented on pay stubs, employer records, or tax returns.
2. Overtime and Shift Differentials
If you regularly earned overtime, holiday pay, or shift differentials, these amounts can factor into your average weekly wage. Vermont’s Worker’s Compensation Act defines average weekly wage for benefit calculations. See 21 V.S.A. § 642: https://legislature.vermont.gov/statutes/section/21/009/00642
3. Bonuses, Commissions, and Incentives
Performance bonuses, sales commissions, and incentive payments may be included if they were a consistent part of your compensation. Provide documentation such as year-to-date bonus statements or commission reports.
4. Benefits and Fringe Compensation
Certain employer-paid benefits—like health insurance premiums, retirement contributions, and paid leave—might be considered part of your total compensation package. Check your employment agreement and IRS Form W-2 phrases like “Employer contributions to pension.”
5. Self-Employment Income
If you are self-employed or a business owner, use profit and loss statements, 1099 forms, or tax filings to prove your net income. You may claim lost business profits as lost wages when they reflect your personal earnings.
6. Other Income Sources
Occasionally, lost rents, royalties, or partnership distributions tied directly to your labor can be included. Each case requires detailed financial records to substantiate these amounts.
How Vermont Law Applies
Vermont’s Worker’s Compensation statute calculates benefits based on average weekly wage. For partial or total disability, the Act provides a percentage of that wage: see 21 V.S.A. § 642. In tort claims, Vermont courts allow recovery of past and future lost earnings if clearly proven with reliable evidence.
Helpful Hints
- Gather pay stubs, tax returns, and employer statements early.
- Keep a journal tracking missed work and schedule changes.
- Consult a tax professional regarding net versus gross income distinctions.
- Document regular bonuses and overtime over at least 52 weeks.
- Include receipts for missed freelance or side-job earnings.
- Request an official job description to demonstrate expected hours and duties.
- Review Vermont’s wage statute at https://legislature.vermont.gov/statutes/chapter/21/009 for detailed definitions.