A serious car accident can do more than damage your vehicle. It can keep you from earning an income while you heal. In California, you may be entitled to recover lost wages after a car crash, but what counts as a recoverable loss depends on your situation.
What counts as lost wages
Lost wages include any income you would have earned if the accident had not happened. This can cover regular pay, overtime, bonuses, tips, and commissions. Even the value of paid time off, such as vacation or sick days you had to use, can count. If your injury keeps you from working in the future, you may also claim loss of earning capacity—the difference between what you could earn before the accident and what you can earn now.
Proving your wage loss
To recover lost wages, you must show both that the accident caused your time away from work and how much you actually lost. Pay stubs, W-2 forms, and tax returns can help document your income. Your employer can confirm how long you were off work and whether you missed opportunities for bonuses or promotions. Medical records that describe your injury and treatment also help prove that your missed work was necessary for recovery.
Future income and reduced earning ability
If your injuries cause lasting physical limits, you may lose future income potential. You can claim damages for reduced earning capacity if you can show your ability to work or advance in your career has been impacted. Economists or vocational experts often help estimate future wage losses based on your age, education, and career path.
When partial fault affects your recovery
California follows a comparative fault rule. If you share some blame for the accident, your total recovery is reduced by your percentage of fault. For example, if you are found 20% responsible and your total lost wages are $10,000, you could recover $8,000.
Lost wage claims are an important part of recovering from a car accident. Knowing what counts and how to prove it helps you seek fair compensation for the time and income you lost.