Why Documenting Lost Wages Matters

Lost wages represent the income you missed due to your injuries. Insurance adjusters need detailed wage records and supporting medical documentation to approve these losses, so gathering the right documents helps ensure your claim is complete and fair.

Step 1: Gather Proof of Your Income

To show your usual earnings, you’ll need records tailored to your type of employment. Here’s what’s typically required:

If You’re a Salaried or Hourly Employee

• Recent Pay Stubs: Collect two pay stubs from just before the accident to establish your regular earnings as well as timesheets that show the days or hours you missed after the accident.
• PTO or Sick Leave: If you had to use Paid Time Off (PTO) or Sick Leave to cover missed days, this can be a form of loss, as it affects your future leave balance.  Find entries that specify the dates and hours designated as PTO or sick time due to the accident.
• Employer Statement: A formal letter from your employer can make a significant difference. This letter should confirm:
  • Your job title, hourly wage or salary, and usual work hours.
  • The specific dates you missed work due to the accident.
  • Any bonuses, commissions, or other earnings impacted by your absence.

To make this process simpler for your employer, here’s a template you can share for them to fill out. If you choose to, you can send this populated form with your demand letter.

If You’re Self-Employed

Lost wages can be more complicated to document if you’re self-employed, but there are a few key records that can help:

• Tax Returns: Use recent tax returns from the past 1-2 years to establish a baseline for your income.
• Invoices or Payment Records: Collect recent invoices or contracts that reflect your usual income and billing rate.
• Missed Contracts or Projects: Provide documentation (such as emails or signed contracts) for any jobs or projects you couldn’t complete due to your injuries. Try to estimate what you would have earned from these opportunities.

Step 2: Obtain Medical Documentation

Adjusters may require proof that your injuries prevented you from working. Here’s what they typically look for:

• Doctor’s Note or Medical Certification: This document should confirm that your injuries kept you from working and ideally outline the expected recovery period.

Medical documentation helps link your wage loss directly to your injuries, which strengthens your claim.

Putting It All Together

When preparing your demand letter, include:

• Total Lost Income: The final amount calculated, covering base wages and any additional income impacts.
• Supporting Documents: Attach pay stubs, tax returns, invoices, medical notes, and the employer’s letter (or wage loss calculator results) to support your claim.