Which Types of Income Can Be Included When Calculating Lost Wages in North Carolina?

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Detailed Answer

When an injured person seeks reimbursement for time missed from work, North Carolina law allows recovery of any losses that flow naturally and proximately from the injury. That includes both past wages (already lost) and future earning capacity (reasonably expected losses). Below is a non-exhaustive list of income sources that courts and insurance adjusters commonly recognize as compensable in a personal-injury claim.

1. Straight Pay

  • Hourly or salaried earnings documented by paystubs, W-2s, or direct-deposit records.
  • Regular cost-of-living or step increases you would have earned if uninjured.

2. Overtime & Shift Differentials

  • Time-and-a-half or double-time hours you routinely worked.
  • Extra pay for night, weekend, or holiday shifts.

3. Commissions & Performance Bonuses

  • Sales commissions, incentives, or production bonuses calculated by historical averages.
  • Quarterly or annual bonuses you can show a consistent track record of earning.

4. Tips & Gratuities

  • Tips reported on tax returns or credit-card receipts (common for servers, hair stylists, drivers).
  • Reasonably certain cash tips substantiated by testimony or industry averages.

5. Self-Employment & Gig-Economy Income

  • Net profits from freelance work, rideshare driving, or online sales, proven with 1099s and Schedule C tax filings.
  • Lost contracts or projects you were reasonably certain to complete.

6. Fringe Benefits With Monetary Value

  • Employer contributions to health, dental, and vision insurance.
  • Company match to a 401(k) or pension.
  • Use of a company vehicle, cell phone, or housing allowance.
  • Lost paid-time-off (PTO) banks you had to exhaust because of the injury.

7. Future Earning Capacity

North Carolina Pattern Jury Instruction 810.51 permits recovery of earnings the plaintiff is reasonably certain to lose in the future, taking into account age, occupation, skill level, and the medical prognosis. Vocational or economic experts often quantify this loss (Rule 702 testimony).

Proof Required

Under North Carolina law, lost-income damages must be proven with reasonable certainty (not mathematical precision). Typical evidence includes:

  • Recent paystubs, W-2s, and tax returns;
  • Employer HR or payroll affidavits;
  • Business ledgers and profit-and-loss statements (for self-employed claimants);
  • Medical work-restriction notes tying the income loss to the injury.

Helpful Hints

  1. Collect at least three years of tax returns to show pre-injury earning trends.
  2. Ask your employer for a written statement confirming overtime opportunities you missed.
  3. Keep a diary of missed shifts or gigs while you recover.
  4. Do not assume insurance will add fringe benefits automatically—itemize each benefit with a dollar figure.
  5. Consult an economist early if your injury threatens long-term earning potential.

Injured and worried about lost income? North Carolina law allows you to recover much more than just your hourly wage. Our personal-injury team has the experience to document every category of lost earnings and fight for the full amount you deserve. Call us today at 919-313-2737 for a free, no-obligation consultation.

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