{"id":14003,"date":"2019-11-01T18:09:24","date_gmt":"2019-11-01T18:09:24","guid":{"rendered":"https:\/\/usaccidentlaw.wpengine.com\/?p=14003"},"modified":"2025-11-11T00:21:23","modified_gmt":"2025-11-11T00:21:23","slug":"recovering-lost-wages-california","status":"publish","type":"post","link":"https:\/\/dklaw.com\/es\/the-fine-print\/recovering-lost-wages-california\/","title":{"rendered":"Obtenga Ayuda Para Recuperar Salarios Perdidos en un Caso de Lesiones Personales en California"},"content":{"rendered":"<div class=\"dklaw-section dklaw-hero dklaw-hero__blog align wp-block-dklaw-hero-blog has-background has-primary-beige-background-color\"><div class=\"acf-innerblocks-container\">\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:50%\"><div class=\"dklaw-breadcrumbs align wp-block-dklaw-breadcrumbs\"><a href=\"https:\/\/dklaw.com\">Home<\/a><a href=\"https:\/\/dklaw.com\/es\/the-fine-print\/recovering-lost-wages-california\/\" class=\"current\">Get Help Recovering Lost Wages in a California Personal Injury Case<\/a><script type=\"application\/ld+json\">\n\t{\n\t  \"@context\": \"https:\/\/schema.org\",\n\t  \"@type\": \"BreadcrumbList\",\n\t  \"itemListElement\": [\n\t\t  {\n\t\t\t\t\"@type\": \"ListItem\",\n\t\t\t\t\"position\": 1,\n\t\t\t\t\"name\": \"Home\",\n\t\t\t\t\"item\" : \"https:\/\/dklaw.com\"\n\t\t\t},{\n\t\t\t\t\"@type\": \"ListItem\",\n\t\t\t\t\"position\": 2,\n\t\t\t\t\"name\": \"Get Help Recovering Lost Wages in a California Personal Injury Case\",\n\t\t\t\t\"item\" : \"https:\/\/dklaw.com\/es\/the-fine-print\/recovering-lost-wages-california\/\"\n\t\t\t}\n\t  ]\n\t}\n\t<\/script><\/div>\n\n\n<h1 class=\"wp-block-heading\">Get Help Recovering Lost Wages in a California Personal Injury Case<\/h1>\n\n\n<div class=\"dklaw-hero__blog-meta align wp-block-dklaw-hero-blog-meta\"><div class=\"acf-innerblocks-container\">\n<div class=\"dklaw-taxonomies align wp-block-dklaw-taxonomies\"><a href=\"https:\/\/dklaw.com\/es\/learning-hub\/?_practice_area=personal-injury\" rel=\"nofollow\">Personal Injury<\/a> <\/div>\n\n\n<p class=\"has-primary-gray-color has-text-color\">Reading Time: 9 Minutes<\/p>\n\n<\/div><span>November 1, 2019<\/span><span>Michelle Lysengen<\/span><\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1707\" src=\"https:\/\/dklaw.com\/wp-content\/uploads\/2021\/06\/money-accident-lawyer.jpg\" alt=\"A mix of U.S. dollar bills\" class=\"wp-image-32434\" srcset=\"https:\/\/dklaw.com\/wp-content\/uploads\/2021\/06\/money-accident-lawyer.jpg 2560w, https:\/\/dklaw.com\/wp-content\/uploads\/2021\/06\/money-accident-lawyer-300x200.jpg 300w, https:\/\/dklaw.com\/wp-content\/uploads\/2021\/06\/money-accident-lawyer-1024x683.jpg 1024w, https:\/\/dklaw.com\/wp-content\/uploads\/2021\/06\/money-accident-lawyer-768x512.jpg 768w, https:\/\/dklaw.com\/wp-content\/uploads\/2021\/06\/money-accident-lawyer-1536x1024.jpg 1536w, https:\/\/dklaw.com\/wp-content\/uploads\/2021\/06\/money-accident-lawyer-2048x1366.jpg 2048w, https:\/\/dklaw.com\/wp-content\/uploads\/2021\/06\/money-accident-lawyer-18x12.jpg 18w, https:\/\/dklaw.com\/wp-content\/uploads\/2021\/06\/money-accident-lawyer-1987x1325.jpg 1987w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n<\/div>\n<\/div>\n\n<\/div><\/div>\n\n<div class=\"dklaw-section dklaw-toc alignfull wp-block-dklaw-toc\"><div class=\"acf-innerblocks-container\">\n<div class=\"dklaw-toc__sidebar align wp-block-dklaw-toc-sidebar\"><div class=\"dklaw-toc__sidebar-menu\"><h4 class=\"dklaw-toc__sidebar-toggle\">Jump To<\/h4><ul><\/ul><\/div><div class=\"acf-innerblocks-container\">\n<div class=\"dklaw-card align wp-block-dklaw-card has-background has-primary-black-background-color\"><div class=\"acf-innerblocks-container\">\n\n<h4 class=\"wp-block-heading has-primary-white-color has-text-color\">Every 4 minutes.<\/h4>\n\n\n\n<p class=\"has-primary-white-color has-text-color\">On average, every 4 minutes someone picks up the phone and calls us for help. That kind of trust says everything.<\/p>\n\n\n\n<div class=\"wp-block-button is-style-button-phone\"><a class=\"wp-block-button__link has-primary-yellow-background-color has-background wp-element-button\" href=\"tel:8002010265\">800-201-0265<\/a><\/div>\n\n<\/div><\/div>\n<\/div><\/div>\n\n<div class=\"dklaw-toc__blocks align wp-block-dklaw-toc-blocks\"><div class=\"acf-innerblocks-container\">\n<div class=\"dklaw-toc__block align wp-block-dklaw-toc-block\"><div class=\"acf-innerblocks-container\">\n\n<p>At DK Law, we frequently handle cases of clients injured in car accidents and missing significant time at work. Under California law, plaintiffs can seek compensation for lost wages in personal injury claims, provided they can adequately prove those wages.&nbsp;<\/p>\n\n\n\n<p>In simple terms, lost wages represent the income an injured person would have earned had the accident not occurred due to the defendant\u2019s negligence. This process can be complex, so having an experienced attorney is crucial. Additionally, California law allows plaintiffs to seek compensation for future lost income. We\u2019ve prepared this detailed article to help you better understand these intricate legal matters.&nbsp;<\/p>\n\n\n\n<p><br><\/p>\n\n<\/div><\/div>\n\n<div class=\"dklaw-toc__block align wp-block-dklaw-toc-block\"><div class=\"acf-innerblocks-container\">\n\n<h2 class=\"wp-block-heading\">Dealing With the Insurance Companies<\/h2>\n\n\n\n<p>We\u2019d love to tell you that insurance companies are eager to do the right thing and support accident victims, but unfortunately, that\u2019s not the reality. Insurance companies are large corporations focused on protecting their bottom line, not paying fair compensation for injury claims and lost wages.<\/p>\n\n\n\n<p>They often use tactics like denying or minimizing claims and shifting blame onto the victim to avoid paying what\u2019s deserved. Additionally, they may delay the settlement process, hoping you\u2019ll give up.&nbsp;<\/p>\n\n\n\n<p>We will fight for you to the end.&nbsp;<\/p>\n\n<\/div><\/div>\n\n<div class=\"dklaw-toc__block align wp-block-dklaw-toc-block\"><div class=\"acf-innerblocks-container\">\n\n<h2 class=\"wp-block-heading\">What Are Lost Wages or Lost Income?&nbsp;<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/dklaw.com\/wp-content\/uploads\/2019\/11\/paycheck.jpg\" alt=\"Opening paycheck in envelope\"\/><\/figure>\n\n\n\n<p>In California, lost wages refer to any income you would have earned at your job if you hadn\u2019t been injured in a car accident. This compensation is designed to help accident victims recover the earnings they missed out on due to their inability to work.<\/p>\n\n\n\n<p>Given California\u2019s large population, lost wages are a crucial component in personal injury settlements, and we will fight to ensure you receive the full compensation you deserve.<\/p>\n\n\n\n<p>A claim for lost wages can include:<\/p>\n\n\n\n<ul class=\"wp-block-list is-style-arrow-list\">\n<li>Regular pay (salary or hourly)<\/li>\n\n\n\n<li>Overtime wages<\/li>\n\n\n\n<li>Commissions<\/li>\n\n\n\n<li>Income from self-employment<\/li>\n\n\n\n<li>Bonuses<\/li>\n\n\n\n<li>Personal, vacation, or sick days<\/li>\n\n\n\n<li>Other lost benefits, such as free meals or car allowances<\/li>\n<\/ul>\n\n\n\n<p>Contact us today for a FREE consultation to learn how we can help with your lost wages claim.<\/p>\n\n<\/div><\/div>\n\n<div class=\"dklaw-toc__block align wp-block-dklaw-toc-block\"><div class=\"acf-innerblocks-container\">\n\n<h2 class=\"wp-block-heading\">Are Lost Wages Taxable in California?<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/dklaw.com\/wp-content\/uploads\/2019\/11\/tax.jpg\" alt=\"Three wooden blocks with &quot;tax&quot; written on them\"\/><\/figure>\n\n\n\n<p>This is another question that our clients ask us all the time. In theory, damages for lost wages in a California personal injury case are&nbsp;taxable.<\/p>\n\n\n\n<p>The Internal Revenue<a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/104\" target=\"_blank\" rel=\"noreferrer noopener\">&nbsp;Code section 104<\/a>&nbsp;states that gross income for all tax purposes does not include \u201cthe amount of any damages received (other than punitive damages) on account of personal physical injuries or sickness.\u201d<\/p>\n\n\n\n<p>In the past, the courts have generally held this to exclude any compensation for lost wages. Lost income would have been taxable if earned, so it is taxable when recovered in a California injury lawsuit.<\/p>\n\n\n\n<p>The problem is that in California,&nbsp;personal injury settlements&nbsp;are typically one big \u201clump sum\u201d that isn\u2019t neatly broken up into compensation for accident injuries and lost wages.<\/p>\n\n\n\n<p>This can make it difficult for anybody to determine how much, if any, taxes are owed.&nbsp;<\/p>\n\n\n\n<p>Your best bet is to consult with a tax professional to decisively determine the amount of money you might owe for taxes. Do not overlook this step. You don\u2019t want the IRS to contact you five years later and say you owe them money.<\/p>\n\n<\/div><\/div>\n\n<div class=\"dklaw-toc__block align wp-block-dklaw-toc-block\"><div class=\"acf-innerblocks-container\">\n\n<h2 class=\"wp-block-heading\">How to Calculate Lost Wages<\/h2>\n\n\n\n<p>In California, the law requires that any personal injury plaintiff (typically the accident victim) must prove their lost earnings.<\/p>\n\n\n\n<p>If you were injured for just a short period of time, then the calculation is pretty straightforward, but it gets complicated if the plaintiff is due for a raise. Then, it might be necessary to get testimony from a forensic accountant or an occupational expert to help the courts make a final decision.<\/p>\n\n<\/div><\/div>\n\n<div class=\"dklaw-toc__block align wp-block-dklaw-toc-block\"><div class=\"acf-innerblocks-container\">\n\n<h2 class=\"wp-block-heading\">Lost Wages Vs. Earning Capacity<\/h2>\n\n\n\n<p>We frequently receive this question from our clients, and we\u2019d like to explain the difference briefly.<\/p>\n\n\n\n<p>Lost wages refer to the lost income you could not earn in the past due to a personal injury. This covers out-of-pocket losses from the time of the injury until the settlement or trial date.<\/p>\n\n\n\n<p>On the other hand, lost earning capacity relates to future income you won\u2019t be able to earn due to the injury. California law allows plaintiffs to seek compensation for this potential loss.<\/p>\n\n\n\n<p>However, proving lost earning capacity is more complex and often requires expert testimony from medical or occupational professionals. Factors like potential raises, bonuses, and career advancements must be considered.&nbsp;<\/p>\n\n<\/div><\/div>\n\n<div class=\"dklaw-toc__block align wp-block-dklaw-toc-block\"><div class=\"acf-innerblocks-container\">\n\n<h2 class=\"wp-block-heading\">Proving Lost Wages in California<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/dklaw.com\/wp-content\/uploads\/2019\/11\/woman-writing-something.jpg\" alt=\"Woman writing on document attached to clipboard\"\/><\/figure>\n\n\n\n<p>When it comes to actually calculating lost wages in California, the path is not simple or clear. But we have done our best to break down the most common methods below:&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Getting a Lost Wages Letter from Your Employer<\/h3>\n\n\n\n<p>When the plaintiff has regular (stable) employment, the easiest way to claim lost wages is to combine past pay stubs and a letter from the plaintiff\u2019s employer.<\/p>\n\n\n\n<p>Any lost wages letter from a California employer should include:<\/p>\n\n\n\n<ul class=\"wp-block-list is-style-arrow-list\">\n<li>Employee\u2019s job title<\/li>\n\n\n\n<li>The date on which the employee was hired<\/li>\n\n\n\n<li>Number of hours the employee normally works per week<\/li>\n\n\n\n<li>Confirmation that the employee is (or was) employed as of the date of the accident<\/li>\n\n\n\n<li>The employee\u2019s regular pay rate and frequency of pay ($20 per hour, paid bi-monthly)<\/li>\n\n\n\n<li>Any sick and vacation days the employee had to use due to the injury<\/li>\n\n\n\n<li>The overtime rate (if applicable) to which the employee is entitled, and the number of hours for overtime that are usually worked in a week<\/li>\n\n\n\n<li>How many days or hours of work the employee missed, which would include missing work because of doctor appointments and medical treatment<\/li>\n\n\n\n<li>Any amount of overtime pay (within reason) that the employee could have expected to receive during this period<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Past Pay Stubs and Tax Returns<\/h3>\n\n\n\n<p>Quite often, it can be very hard for an employee to get a letter from their employer, or the plaintiff might be self-employed, etc.<\/p>\n\n\n\n<p>In this situation, the plaintiff can prove lost wages using another method, such as past pay stubs or income tax returns. If needed, the plaintiff can request a copy of their past tax return using<a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/f4506.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">&nbsp;IRS Form 4506<\/a>.<\/p>\n\n\n\n<p>In addition, you can use California<a href=\"https:\/\/www.ftb.ca.gov\/forms\/misc\/3516.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">&nbsp;Form FTB 3516<\/a>&nbsp;to find copies of past California tax filings from the California Tax Board.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Proving Lost Self-Employment Income<\/h3>\n\n\n\n<p>To try to recover any lost self-employed income here in California, you (the plaintiff) will need to prove what you would have earned during the period in question (when you could not work).<\/p>\n\n\n\n<p>There are a number of documents that can help prove any lost self-employment:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Tax returns from previous years<\/li>\n\n\n\n<li>Any billing statements for the months leading up to the accident itself<\/li>\n\n\n\n<li>When income is seasonal, then billing statements for the same period during the preceding years<\/li>\n<\/ol>\n\n\n\n<p>When the plaintiff has a high income (or is just complicated with bonuses, etc.), it can be ideal to have a forensic accounting witness testify to prove the income in question.<\/p>\n\n\n\n<p>As you can tell, this whole process is very complicated, and it\u2019s a bad idea to try to do this against an insurance company without a lawyer.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Lost Overtime, Commissions, or Bonus<\/h3>\n\n\n\n<p>Commissions, bonuses, overtime pay, and other perks can be claimed as lost wages in California.<\/p>\n\n\n\n<p>There are some common methods used to prove this speculative income (not limited to) \u2013<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>A written employment contract<\/li>\n\n\n\n<li>Past pay stubs showing a pattern of bonuses or overtime<\/li>\n\n\n\n<li>Proof of the employer\u2019s policies for that income<\/li>\n\n\n\n<li>Some proof that any conditions for getting extra income were (or could have been) completed<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">Lost Personal Days, Sick Days, and Vacation Time<\/h3>\n\n\n\n<p>If a plaintiff was forced to use personal days, vacation days, or sick days to cover missed work days, they can claim lost wages.<\/p>\n\n\n\n<p>If the defendant hadn\u2019t acted negligently, the plaintiff would have had those sick and vacation days available to them to use whenever they needed them.<\/p>\n\n\n\n<p>In some instances, the plaintiff might have been able to even cash them out if the employer allowed this process.<\/p>\n\n\n\n<p>Like all lost wages, you must prove that the time was lost due to the accident (or injury) if you want to recover those damages.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How Can I Prove Income From Tips in California?&nbsp;<\/h3>\n\n\n\n<p>This is the most difficult type of \u201clost wage\u201d to prove, but it\u2019s possible.<\/p>\n\n\n\n<p>There are some popular ways to prove that you lost tips due to an injury and missed work.<\/p>\n\n\n\n<p>Below is a partial list of ways to help prove you lost tips \u2013<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>The best is an employer\u2019s letter verifying the amount that the plaintiff could have earned<\/li>\n\n\n\n<li>Any proof of income from prior pay periods, such as past bank deposits, etc.<\/li>\n\n\n\n<li>Also, previous tax returns work well.<\/li>\n<\/ol>\n\n\n\n<p>One common issue that can arise is that a plaintiff tries to claim they missed out on tip money, but in the past, they didn\u2019t report all the tips they earned.<\/p>\n\n\n\n<p>This can set off a Red Flag with the IRS or California Franchise Tax Board because there is a discrepancy between your reported income and your reported earnings to the IRS.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Recovering Unemployment Insurance Benefits<\/h3>\n\n\n\n<p>This is a complex issue, and you\u2019ll want to consult with a lawyer about it.&nbsp;<\/p>\n\n\n\n<p>To be eligible for unemployment benefits in California, an employee needs to:<\/p>\n\n\n\n<ul class=\"wp-block-list is-style-arrow-list\">\n<li>Be available and actively looking for employment<\/li>\n\n\n\n<li>Be physically able to work<\/li>\n<\/ul>\n\n\n\n<p>The tricky part is that someone claiming lost wages means they were not able to work in the past.<\/p>\n\n\n\n<p>In this situation, the plaintiff would usually have been expected to file for<a href=\"https:\/\/www.edd.ca.gov\/Disability\/\" target=\"_blank\" rel=\"noreferrer noopener\">&nbsp;disability benefits in California<\/a>&nbsp;instead of unemployment.<\/p>\n\n\n\n<p>Of course, there are exceptions to this rule, so contact our law firm today about your injury case and see if we can help.&nbsp;&nbsp;<\/p>\n\n<\/div><\/div>\n\n<div class=\"dklaw-toc__block align wp-block-dklaw-toc-block\"><div class=\"acf-innerblocks-container\">\n\n<h2 class=\"wp-block-heading\">Why Contact DK Law<\/h2>\n\n\n\n<p>After an accident, dealing with insurance companies can be overwhelming. Their primary goal is to minimize or deny your claim, often causing unnecessary stress and delays. Once you file an injury claim, the insurance company may try to shift the blame onto you or reduce its liability by arguing that you were partially at fault.<\/p>\n\n\n\n<p>At DK Law, our <a href=\"\/attorneys\">experienced legal team<\/a> specializes in protecting car accident victims. We fight tirelessly to ensure our clients receive the maximum compensation they deserve for their serious injuries. Whether it\u2019s recovering medical costs, lost wages from missed work, or other damages, we stand by your side to hold the insurance companies accountable.<\/p>\n\n<\/div><\/div>\n\n<div class=\"dklaw-author align wp-block-dklaw-author has-text-color has-primary-black-color has-background has-tertiary-blue-background-color\"><div class=\"dklaw-author__block\"><div class=\"dklaw-author__image\" style=\"background-image:url(https:\/\/dklaw.com\/wp-content\/uploads\/2025\/07\/michelle.jpeg);\"><\/div><div><p class=\"dklaw-author__block-about\">About the Author<\/p><h4 class=\"wp-block-heading is-style-heading-serif\">Michelle Lysengen<\/h4><h6><\/h6><p>Michelle is a content specialist at DK Law and creates content that highlights company events and breaks down complex legal topics into digestible, engaging content. She earned her B.A. in Marketing from California State University, Fullerton.<\/p>\n<div class=\"dklaw-author__social-icons\"><a href=\"https:\/\/www.linkedin.com\/in\/michelle-lysengen\/\"><svg width=\"17\" height=\"17\" viewBox=\"0 0 17 17\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><g clip-path=\"url(#clip0_5702_21335)\"><path d=\"M15.7416 0H1.25508C0.561133 0 0 0.547852 0 1.2252V15.7715C0 16.4488 0.561133 17 1.25508 17H15.7416C16.4355 17 17 16.4488 17 15.7748V1.2252C17 0.547852 16.4355 0 15.7416 0ZM5.04355 14.4865H2.52012V6.37168H5.04355V14.4865ZM3.78184 5.26602C2.97168 5.26602 2.31758 4.61191 2.31758 3.80508C2.31758 2.99824 2.97168 2.34414 3.78184 2.34414C4.58867 2.34414 5.24277 2.99824 5.24277 3.80508C5.24277 4.60859 4.58867 5.26602 3.78184 5.26602ZM14.4865 14.4865H11.9664V10.542C11.9664 9.60234 11.9498 8.39043 10.6549 8.39043C9.34336 8.39043 9.14414 9.41641 9.14414 10.4756V14.4865H6.62734V6.37168H9.04453V7.48066H9.07773C9.41308 6.84316 10.2365 6.16914 11.4617 6.16914C14.015 6.16914 14.4865 7.84922 14.4865 10.034V14.4865Z\" fill=\"#08368B\"\/><\/g><defs><clipPath id=\"clip0_5702_21335\"><rect width=\"17\" height=\"17\" fill=\"white\"\/><\/clipPath><\/defs><\/svg><\/a><\/div><\/div><\/div><div class=\"dklaw-author__block\"><div class=\"dklaw-author__image\" style=\"background-image:url(https:\/\/dklaw.com\/wp-content\/uploads\/2025\/10\/jehrid-mosley-reviewer.jpg);\"><\/div><div><p>Reviewed By<\/p><h4 class=\"wp-block-heading is-style-heading-serif\">Jehrid Mosley, Esq.<\/h4><h6>Attorney<\/h6><p>Jehrid Mosley is a dedicated personal injury attorney at DK Law with experience handling auto accidents, dog bites, premises liability, and habitability cases.<\/p>\n<br><p><em>Last reviewed on November 11, 2025<\/em><\/p><\/div><\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n\n<div id=\"form\" style=\"--bg-image: url(\/wp-content\/themes\/dklaw\/img\/dklaw-form-bg.jpg);\" class=\"dklaw-section dklaw-cta dklaw-cta-form alignfull 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