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How To Calculate Lost Wages in a Colorado Personal Injury Case

Posted on July 19, 2025 in

Plaintiffs in personal injury cases often claim lost wages as part of their economic damages. If their injuries left them unable to work for a certain period or affected their future earning capacity, they may be able to seek this lost income from the defendant. However, “lost wages” in a personal injury claim can encompass a wide range of costs, and accurately calculating this figure may be challenging.

Learn how you might calculate lost wages compensation in a Colorado personal injury case. For more personalized guidance, consult a personal injury attorney.

What Is Covered Under Lost Wages Damages?

When you seek economic damages after a personal injury accident, you are pursuing compensation for the monetary losses you incurred from the accident. Those losses may include lost wages and income if your injuries left you unable to work.

As a result, you may be in a position to pursue personal injury damages for any of the following:

  • Hourly wages for the number of shifts you worked
  • Overtime, if you regularly work extra shifts
  • Bonuses you missed because you were unable to meet performance goals
  • Sick days or PTO time you used during your period of absence
  • Lost tips, commission, or other job-specific perks

If your injuries prevent you from continuing to earn the same amount you previously earned long-term, you may also have the right to pursue lost earning capacity.

Calculating Lost Wages in an Injury Claim

You may wish to calculate lost wages in a personal injury claim yourself to verify that your accident settlement fully accounts for these damages or to gain negotiating power. You can start by calculating the hourly or salary wages you would have earned during that period.

Take your hourly wage and multiply it by the number of hours you missed. If you earn a salary, divide your yearly salary by the number of hours you work in a year to determine that hourly rate. Note that lost wages damages are typically calculated based on net income, not gross income.

Next, consider other forms of income you normally receive through your job, such as overtime or bonuses. Your employer can inform you of any of these items they provided during your absence.

To estimate lost earning capacity, consider the number of years you have left in your career and the type of job you may be able to work in your new physical condition. This can help you calculate the pay discrepancy for the remainder of your working years. You may need input from a financial expert to support this figure.

How To Prove Lost Wages

Calculating lost wages in a personal injury claim for your own knowledge is only part of the challenge. You also need to prove those lost wages.

One way to provide income loss verification in your personal injury case is through a lost wages letter provided by your employer. This is a letter that verifies information about your employment and wages, such as:

  • Your position or job title
  • Your start date
  • The number of hours you work a week
  • Your rate of pay
  • The amount of overtime you typically work and the overtime rate
  • The number of hours or days you missed during your injury recovery period
  • The amounts you could have expected to receive in bonuses, overtime, commissions, tips, or any other additional income during that time

Your employer is not legally required to write this letter, and not all employers are willing to do so. You can provide other evidence as part of your wage reimbursement claim, such as:

  • Pay stubs from when you were working your normal hours
  • Timesheets showing the number of hours you work, including your overtime
  • The offer letter stating your rate of pay

Preserving evidence during your period of absence can be helpful. Keep all communications from your employer and any documentation showing the shifts you missed.

Seek Legal Assistance With Lost Wage Calculations in Colorado

Proving lost wages after an injury-related work absence could help bolster your personal injury claim and potentially increase your settlement. An experienced personal injury attorney can help you calculate lost wages and other damages that may apply to your Colorado injury case.

Contact Flesch Law Firm today at 303-980-5511 to request a free consultation, then learn more about determining pain and suffering damages in an accident.