Caring and Competent Representation Across New Mexico

2 important considerations when calculating lost wages

On Behalf of | Mar 23, 2023 | Motor Vehicle Accidents

A wrongful death lawsuit is frequently a family’s only option when seeking justice after a major car crash. Unfortunately, people are often reticent to go to court, and those that consider a claim might make mistakes with the process, including failing to request the appropriate amount of compensation based on the losses they incurred. 

For many families, an individual’s lost wages would be the most significant component to their wrongful death claim, other than possibly the hospital bills accrued prior to someone’s death. The wrongful death lawsuit could lead to compensation for decades of lost income, and those who lose a younger or particularly successful loved one may have a very sizable claim to pursue. 

There are two important considerations people need to address when calculating someone’s lost wages as part of a wrongful death lawsuit.

1. The value of benefits

Someone’s employment doesn’t just offer them an hourly wage. They also have paid time off, health benefits and numerous other secondary benefits that significantly increased the financial value of their employment. For many professionals, employment benefits will add up to as much as another 30% on top of their current income. 

2. Future wage increases

Even those who are not particularly ambitious about their careers can expect to receive cost-of-living raises from their employers occasionally. Someone’s income would not remain stagnant for the rest of their life but would trend upward over time. Families have to consider future earning potential, not just current wages, when calculating a lifetime of lost income. 

Getting the right support when pursuing a wrongful death claim will help families connect with an appropriate amount of compensation based on their losses.