If you’ve been injured in an accident because another person was negligent, Indiana allows you to seek compensation for more than just medical bills. You may pursue compensation for past and even future lost wages as long as you can reasonably prove them.
Continue on with this legal guide to recovering lost wages after a personal injury in Indiana by the experienced Fishers car accident lawyers at SLG Accident Attorneys to learn more about how to prove lost income after an accident in Indiana.
Calculating Past and Future Wages After an Injury in Indiana
Most of the time, calculating your past lost wages after a car accident injury is reasonably straightforward. Courts look at records of your past income to decide how much compensation to give you for the period you were unable to work.
If you were able to work after your accident but made less because of temporary medical restrictions, you may also be compensated for the difference between your previous wages and your new, lower wage.
Some injuries are severe enough that they have a long-term impact on your earning capacity. If that’s the case, your lawyer will probably attempt to recover compensation for future lost income. Calculating future lost income after an accident in Indiana is a complex endeavor that depends on several factors, including:
- Your age
- Your skills, training, and education
- Your current occupation
- Your expected career duration
- Your life expectancy
Often, expert testimony plays an important role in proving your future lost income. An expert may be able to tell the court how long you’re likely to live and how long you would have been able to work had you not been injured.
With all else being equal, the nature of your occupation can have a substantial effect on your ability to recover losses. Suppose that you suffered a major leg injury in your accident and had to have part of your lower leg amputated. If you’re a construction worker, this injury would likely end your career. However, if you work in an office, your long-term earning capacity might not be impacted.
What if I Was Partially at Fault for My Accident?
Sometimes, accidents are clear-cut cases where one party was completely in the wrong. However, any personal injury lawyer can tell you that it’s common for both parties to be partially responsible. Because Indiana uses a modified comparative negligence standard, you can still pursue compensation if you were partially at fault for your accident.
Indiana Code § 34-51-2-5 specifies how partial fault can impact your case. If you were partially to blame for your accident, any compensation you’re awarded will be reduced by your percentage of fault. However, if you were more at fault than the other party, you may not recover compensation. Typically, a jury will determine each party’s percentage of fault.
Here’s an example. Imagine you’re driving through an intersection when a car runs a red light. You try to stop, but you don’t have enough time to react, so you hit the side of the car. An accident investigator determines that you were speeding at the time.
A jury determines that because you were speeding (and therefore had less time to stop), you contributed to the accident. However, they recognize that the other driver’s proportion of fault was greater because they ran a red light. Ultimately, they decide you were 20% at fault.
At trial, the jury awards you $100,000 in total damages. That amount is reduced by your percentage of fault, so you ultimately receive $80,000.
What Evidence Will Prove My Lost Wages?
When most people talk about receiving compensation for lost wages, they’re really talking about compensation for both missed wages and reduced earning capacity. To maximize your potential compensation, your attorney will likely attempt to prove both.
Proving Lost Wages
Proving lost income after an accident in Indiana is often fairly straightforward, though there may be exceptions. The more evidence you can gather, the better. You should assemble the following:
- W-2 Forms: Show your annual pay and what was deducted for tax purposes
- Pay Stubs: Show what you earn per pay period
- Dates of Absence: Document the days you weren’t at work
- Statements From Managers: Can clarify other information the documentation doesn’t show
You should also keep documentation of any paid time off (PTO) you used for your injury. You can usually be compensated for that as well.
When calculating your lost wages, your lawyer can subtract your earnings for the pay periods after your injury from your earnings beforehand. They can then advocate for you to be compensated for the difference.
Proving Lost Earning Capacity
In some cases, injuries heal completely and allow injured people to go back to life as usual. However, it’s common for a severe injury to cause a permanent total or partial disability that makes it impossible for you to do the work you once did.
You deserve to be compensated for that loss of earning capacity, but proving an exact dollar amount is very difficult. Depending on the nature of your industry, your lawyer might choose different types of evidence. However, expert witnesses often play a role.
For instance, an injury expert may be able to demonstrate to the court how your injury impacts your range of motion and therefore makes you unable to do the work you once did. They could also explain any pain associated with the injury and why that pain makes working difficult or impossible.
You may also need an economic expert to determine the value of future lost income after an accident in Indiana. An economic expert may be able to study industry trends, account for inflation, and estimate the value of your lost wages over the course of your career.
The right expert witnesses can make a major difference in the success of your case. For instance, a witness who thoroughly breaks down complex concepts and connects with the jury will have an easier time getting their point across than a witness who seems aloof, talks down to the jury, or both.
The good news is that an experienced Fishers personal injury lawyer will have established networks of expert witnesses they can call on. If your case requires an expert witness, your the skilled legal team at SLG Accident Attorneys will take the time to find the best one for you.
How Will Being an Independent Contractor or Self-Employed Affect My Indiana Wage Loss Claim?
Proving lost income after an accident in Indiana for traditional employees is usually straightforward. Often, your attorney can submit your pay stubs, W2 tax forms, or both. These forms can clearly illustrate the difference between your income before the accident and your income after. However, if you’re self-employed, proving your income becomes more complicated.
What Kinds of Documents Can Be Used to Prove Self-Employment Income and Loss?
If you’re self-employed, you don’t have the option of W-2 forms or pay stubs. The type of documentation you need to prove lost income after an accident in Indiana will vary depending on the nature of your work. These are some examples:
1099 Forms
If you’re an independent contractor doing work for someone else, that person or company will likely issue you a 1099 form each year showing your income. You may have multiple 1099 forms from multiple individuals or companies. In this case, your lawyers could add up the forms for the years before your accident and the years after to show the difference in earnings.
Profit and Loss Statements
Not all self-employed people receive 1099 forms. For example, if you have a business selling clothing online, you’re responsible for tracking your own profits and losses. Online accounting software can be used to generate these. Some small business owners prefer to keep a spreadsheet of app business profits and expenses.
What About Tax Returns?
If your self-employment income has been relatively steady (or at least was up until your accident), your tax returns might be the best way to prove a loss.
For example, imagine that you made approximately $50,000 per year in the two years leading up to your accident. Your tax return for the year of the accident shows that you made $35,000. Your attorney may be able to advocate for you to be compensated for the $15,000 you were unable to earn.
If you are unlikely to return to making $50,000 per year, your lawyer may be able to argue that you should be compensated for future lost wages as well. You may need an expert witness to substantiate that argument. Notably, in most cases, a court can’t compel you to produce tax documents.
If you aren’t sure you want to hand over your tax returns right away, many personal injury attorneys suggest providing other documentation first. If you have 1099 forms, profit and loss statements, or spreadsheets of your earnings, some insurance companies or courts will accept these.
Insurers generally won’t order you to hand over your tax returns — but they also aren’t obligated to compensate you according to the documents you give them. If the insurance company is offering you insufficient compensation, it may be worth considering giving it a copy of your tax forms.
What if the Injuries Resulted in Me Losing My Job?
Sometimes, your injuries may be severe enough (or your recovery long enough) that you lose your job entirely. Losing your job often comes with more consequences than just losing your regular income. Your attorney may work with you to prove losses like these:
Missed Bonuses or Tips
Some jobs offer periodic bonuses, regular tips, or both. If your job offers either, your attorney might be able to secure additional compensation for you. For example, if you are a salaried employee but earn an average of $200 in tips each week, you may be able to receive compensation for that additional $800 per month that you can no longer earn.
Missed Opportunities for Promotion
It can be difficult to prove missed opportunities for promotions, but that doesn’t mean it’s impossible. For example, suppose that you made $50,000 a year with your company before losing your job due to injury. However, you had been on track for a promotion that paid $90,000 per year.
If your lawyer can prove that you would likely have gotten that promotion, you might be able to recover $90,000 of compensation for each year you could have expected to work in the new job.
Missed Employment Benefits
For most people, losing their regular income is the hardest part of losing a job. But often, jobs come with additional benefits, and losing those benefits can have a damaging effect on your quality of life.
Health insurance is a great example. If you lose your job, the Consolidated Omnibus Budget Reconciliation Act (COBRA) may allow you to keep your health insurance, at least for a certain period of time. However, you generally must pay the full premium without employer assistance. Depending on the total cost of the plan, this may not be feasible for everyone.
Some employers also match your retirement plan contributions or otherwise contribute to your retirement. You might be able to recover compensation to make up for these losses, too.
When Should I File My Lost Wages Claim in Indiana?
Indiana has a two-year statute of limitations for personal injury cases. This means that you have two years from the date of your injury to file a lawsuit.
However, that doesn’t mean you should wait a year or two to contact a personal injury lawyer. If a lawyer agrees to take your case, they can’t simply file a lawsuit in a few days. To build a strong case on your behalf, your lawyer will likely need to gather the following evidence:
- The police report for your accident
- Traffic camera footage
- Dashcam footage and/or statements from witnesses
- Photos of the accident scene
- Your medical records
- Statements from your doctors
- Your medical bills
- “Black box” data from your vehicle
- Documentation of your lost income
- Statements from expert witnesses
It’s nearly always the best option to consult with a personal injury attorney sooner rather than later. There’s no way to guarantee a positive outcome, but if your attorney has the chance to craft a strong case on your behalf, you’ll be much more likely to receive the kind of compensation you deserve.
Skilled Indiana Personal Injury Lawyers
It’s easy to feel lost, discouraged, and uncertain of the future after a major car accident. This is particularly true if you’ve been unable to work, your long-term earning capacity has been impacted, or both. The team at SLG Accident Attorneys understands — and our lawyers are ready to fight for compensation on your behalf.
We work to earn the trust of our clients and strive to build a relationship with each one. We don’t aim for the maximum possible caseload. Instead, we focus on giving each client the personalized, dedicated representation they need. If you’ve been hurt in an accident caused by someone else’s negligence, get in touch with us for a free consultation today!
