In California, past and future lost wages are a significant component of damages in personal injury cases. These damages compensate an injured party for income they have lost as a result of their inability to work due to the accident or injury, both in the past and projected into the future. Here’s how past and future lost wages are assessed and awarded in California:
- Past Lost Wages:
- Past lost wages refer to the income that the injured party would have earned from the time of the accident up to the date of settlement or trial. These damages compensate for wages, salary, bonuses, commissions, and other forms of income that the injured party was unable to earn due to their injuries.
- Calculating past lost wages typically involves reviewing the injured party’s employment history, earnings records, pay stubs, and other documentation to determine their average earnings before the accident. If the injured party missed work due to the accident, documentation such as medical records, doctor’s notes, and testimony from the employer may be used to establish the duration of the absence and the income lost during that time.
- To calculate past lost wages accurately, it’s essential to consider factors such as the injured party’s regular rate of pay, hours missed from work, any paid time off or sick leave used during the absence, and any available evidence of lost income.
- Future Lost Wages:
- Future lost wages refer to the income that the injured party is reasonably expected to lose as a result of their injuries in the future. These damages compensate for the impairment or reduction in the injured party’s ability to earn income due to their injuries, projected over the remainder of their working life.
- Assessing future lost wages requires consideration of various factors, including the severity and permanence of the injuries, the injured party’s occupation, education, skills, training, and earning capacity, and the impact of the injuries on their ability to work and earn income in the future.
- In many cases, calculating future lost wages involves expert testimony from vocational rehabilitation specialists, economists, or other qualified professionals. These experts evaluate the injured party’s vocational abilities, potential for retraining or job accommodations, and the impact of their injuries on their future employment prospects.
- Present Value:
- When awarding damages for future lost wages, California courts typically calculate the present value of the projected future income losses. This involves discounting the future income stream to its present-day value to account for factors such as inflation, interest rates, and the time value of money.
- Present value calculations ensure that the awarded damages accurately reflect the economic value of the future income losses and provide fair compensation to the injured party.
In summary, past and future lost wages are essential components of damages in personal injury cases in California, aimed at compensating injured parties for the income they have lost and are expected to lose as a result of their injuries. These damages help to restore the injured party’s financial stability and provide support for their ongoing needs and expenses.