Craig D. Rosenbaum | December 30, 2025 | Personal Injury
An accident can leave you unable to work, making lost wages one of the most significant components of a personal injury claim. New York has specific rules regarding wage loss, especially in car accident cases.
This article explains how lost wages are calculated in New York, the distinction between short-term and future lost earnings, and why legal assistance is essential.
No‑Fault Benefits and Serious Injury Threshold
New York is a no‑fault state for most car accidents. After a crash, your own insurance typically pays for medical bills and a portion of your lost wages, regardless of who caused the accident.
The no‑fault system reimburses up to 80% of lost wages, but benefits are capped at $2,000 per month for up to three years. This cap is often insufficient for individuals with higher incomes or those who have sustained significant injuries.
To step outside the no‑fault system and sue the at‑fault driver directly, your injury must meet the “serious injury” threshold. Serious injuries include broken bones, significant disfigurement, loss of a body part, permanent loss of a bodily function, or an injury that prevents you from performing daily activities for at least 90 days. Meeting this threshold allows you to seek full compensation for lost income and other damages.
Calculating Short‑Term Lost Wages
For people who return to work after a period of recovery, calculating lost wages is relatively straightforward. You determine the amount you would have earned during the time you missed work.
The following are typically considered in the calculation:
- Base salary or hourly wage: Multiply the number of missed workdays by your daily wage, or multiply missed hours by your hourly rate.
- Bonuses and overtime: Include lost bonuses, commissions, or overtime pay that you regularly earned before the accident.
- Benefits and perks: Employer contributions to health insurance, retirement plans, and other benefits can be part of your claim.
Pay stubs, tax returns, and statements from your employer substantiate your earnings. Doctors’ notes and medical records show the length of time you were unable to work.
Future Lost Wages and Loss of Earning Capacity
If your injury leads to a long‑term or permanent inability to work, calculating future lost wages becomes more complex.
Relevant factors may include:
- Age and life expectancy: Younger victims may face decades of lost income and, therefore, be entitled to more compensation.
- Education and job skills: Highly specialized or physically demanding careers may be impossible to continue after an injury.
- Wage trajectory: If you were on track for promotions or raises, your lost earning capacity includes future increases.
- Medical prognosis: Testimony from medical experts explains how the injury affects your ability to work long‑term.
- Economic analysis: Economists estimate what someone in your profession would have earned over time. They factor in inflation, cost‑of‑living adjustments, and market trends.
For example, a professional pianist who suffers nerve damage to their hands may never be able to play professionally again. Calculating their losses involves evaluating the market for concert pianists, potential alternative careers, and the years of work that have been lost.
Contact Our New York Personal Injury Lawyers at Rosenbaum Personal Injury Lawyers for a Free Consultation
For more information, please contact Rosenbaum Personal Injury Lawyers to schedule a free consultation. We have three convenient locations around Manhattan, NY, near you in New York City, The Bronx, and Brooklyn.
Rosenbaum Personal Injury Lawyers – New York City Office
100 Wall St 24th Floor, New York, NY 10005
(212) 514-5007
Rosenbaum Personal Injury Lawyers – Bronx Office
1578 Williamsbridge Rd suite 3b, Bronx, NY 10461
(212) 514-5007
(917) 905-2339
Rosenbaum Personal Injury Lawyers – Brooklyn Office
32 Court St #704, Brooklyn, NY 11201
(212) 514-5007
(917) 920-7332
