Recovering Lost Wages After an Accident in Massachusetts

Your Right to Recover Lost Income After an Accident

When another party’s negligence causes an accident that injures you, Massachusetts law entitles you to recover all income that you have lost as a direct result of your injuries. This includes wages from your regular employment, self-employment income, freelance and contract income, income from a second job, tips and commissions that you did not earn because you could not work, and in cases of permanent injury, the future income you will never earn because of lasting limitations. Attorney Jeffrey C. Lavey documents and pursues every category of income loss in every Massachusetts personal injury case.

Documenting Your Lost Wages

Proving lost wages requires documentation. For salaried and hourly employees, the documentation includes a letter from your employer confirming your rate of pay, your scheduled work hours, and the dates you were absent from work due to injury. Pay stubs from before the accident establish your earnings history. Tax returns from prior years may be needed for self-employed claimants. Medical records establishing the dates you were medically unable to work link the lost wages directly to the accident injury. Attorney Lavey coordinates the collection of this documentation in every lost wages case.

Self-Employment and Variable Income

Self-employed workers, freelancers, contractors, gig economy workers, and those with commission-based income face additional complexity in documenting lost income. These workers do not receive fixed paychecks, and their income may vary by week or month. Tax returns from prior years, profit and loss statements, client contracts, and invoices for work that could not be completed during recovery all contribute to establishing the pre-accident income and the loss attributable to the injury. Attorney Lavey works with accountants and forensic economists when necessary to accurately document self-employment income losses.

Future Lost Earning Capacity

When a serious accident injury causes permanent or long-term limitations that will affect the injured person’s ability to earn income in the future, the future lost earning capacity is a major element of the damages claim. This forward-looking calculation requires vocational rehabilitation expert analysis of what the injured person could reasonably have earned over their working lifetime absent the injury, compared to what they can reasonably earn with the injury. An economic expert then calculates the present value of that difference. Attorney Lavey coordinates this expert team in every case involving permanent earning limitations.

PIP Benefits and Lost Wage Coordination

In Massachusetts car accident cases, Personal Injury Protection (PIP) coverage on your auto insurance policy covers a portion of your lost wages up to policy limits regardless of fault. The PIP benefits are paid quickly but may be partial. When you reach a settlement or judgment in your personal injury case, the PIP insurer has a right to be reimbursed for the PIP benefits from the settlement proceeds. Attorney Lavey coordinates PIP benefits and the personal injury claim to maximize your net recovery after all reimbursements.

Frequently Asked Questions