Motor vehicle accidents can cause serious injuries that prevent you from working for weeks or months. Sometimes, injuries are so profound that you cannot return to work or must switch to a less physically demanding job.
New Mexico personal injury law accounts for these damages by allowing accident victims to seek compensation for their lost wages, lost earning capacity, and other damages they suffered due to the accident. An experienced injury lawyer can help identify the damages you can seek after carefully investigating your case.
Types of Damages in Personal Injury Cases
New Mexico’s personal injury damages are generally divided into two groups: economic and non-economic damages.
Economic damages include direct financial losses, such as medical expenses and costs to repair or replace the damaged vehicle. Lost wages and lost earning capacity fall within the category of economic damages.
Non-economic damages include the more subjective damages that accident victims may suffer. They are generally more difficult to quantify and include losses such as pain and suffering, emotional distress, mental anguish, loss of enjoyment of life, and loss of consortium.
Combined, economic and non-economic damages are called compensatory damages because they are intended to compensate the victim for their losses. However, other types of damages can be awarded in personal injury cases, such as punitive damages. Those damages are intended to punish the wrongdoer for outrageous conduct.
Calculating Lost Wages
Lost wages refers to the money you would have earned from your job if you had not been injured. It includes all lost income you sustained from the date of your injury and while you were away from work seeking medical treatment or recovering. The value of your lost wages is based on your specific losses, including:
- Hourly wages
- Salaries
- Overtime pay
- Tips
- Bonuses
- Commissions
- Employment benefits, including used sick days and vacation time
- Self-employment income
Your check stubs can often prove most of your lost wages. You might also need a letter from your employer stating the specific losses you incurred, as well as the money and benefits you may have otherwise earned had you not been injured.
If you are self-employed, you may need invoices, canceled sales contracts, and tax returns to help prove your claim for lost income.
Calculating Lost Earning Capacity
Calculating lost earning capacity is more difficult than calculating lost wages. Loss of earning capacity refers to the income you would have been able to earn in the future if you had not been injured.
It covers the period of time that you are out of work, which may be for the rest of your life. To calculate these losses, it’s necessary to compare what you likely would have earned had you not been injured with what you are now expected to earn.
If you are able to work but moved to a lower-paying job with fewer physical requirements, you look at the difference between your former and current projected earnings. Determining an accurate value for these losses often requires hiring a vocational expert witness who can perform these calculations, based on your age, occupation, industry, and other relevant factors.
Contact Our Car Accident Lawyers Today
If you believe you have a claim for lost wages and/or earning capacity, do not delay contacting Caruso Law Offices for legal help. You can reach us at (505) 883-5000 or online through our contact form.