Recovering Lost Wages After a Car Accident in Texas

In Texas, injured victims have the legal right to recover lost wages as part of a car accident claim. If you can prove the accident caused your injury, that the injury prevented you from working, and the value of what you lost. 

What Counts as Lost Wages?

“Lost wages” refers to the income you would have earned if you had not been injured in a car accident. In Texas, recoverable lost wages can include:

• Regular income missed during recovery.
• Overtime, bonuses, commissions, or shift differentials you would have earned.
• Employment benefits such as retirement contributions or healthcare stipends.
• Paid time off, sick leave, or vacation days you were forced to use.
• Loss of future earning capacity if your injuries permanently reduce your ability to work.

If your injury affects your ability to earn income long into the future, you may also recover loss of earning capacity—the difference between what you would have earned and what you can now reasonably earn. 

How to Prove Lost Wages

To recover lost wages, you must present strong documentation. Common forms of evidence include:

• Proof of your earnings before the accident: Pay stubs, W-2s, 1099s, or tax returns showing your typical earnings. 
• Employer statements confirming your job title, hourly rate or salary, overtime potential, and work schedule. 
• Proof that your injury prevented you from working: Medical records, doctors’ notes, or disability reports showing your limitations and recovery period. A statement from your doctor that you were unable to perform your job duties for a certain period. 
• Proof of the amount lost: Pay stubs or bank statements reflecting income you did receive (or not). Employer verification of missed hours or days.
• For self-employed individuals: invoices, business records, profit-and-loss statements, contracts, canceled jobs, tax returns. 
• Calculations of future losses (if applicable): Expert testimony (vocational experts, economists) to project what you would have earned over time versus what you will now. 

Who Pays for Lost Wages?

Compensation for lost wages may come from different sources depending on the circumstances of your accident:

Personal Injury Protection (PIP)

Unless rejected in writing, Texas auto insurance policies include PIP, which covers medical bills and up to 80 percent of lost wages, regardless of fault.

At-fault Driver’s Liability Insurance

If another driver caused the crash, you can file a claim against their insurance to recover your full lost wages and loss of earning capacity.

Uninsured/Underinsured Motorist Coverage (UM/UIM)

If the at-fault driver has no insurance or not enough coverage, your UM/UIM policy may help cover wage losses.

Workers’ Compensation

If you were injured in a crash while working, you may qualify for wage benefits through workers’ compensation.

Lawsuit

If insurance does not pay or coverage is inadequate, you may file a personal injury lawsuit against the at-fault driver.

How a Texas Car Accident Attorney Can Help You Recover Lost Wages

Recovering lost wages can be a complex task. Insurance companies often try to undervalue or deny claims. A skilled attorney will:

• Gather and organize strong documentation (pay stubs, employer statements, tax returns).
• Work with vocational and economic experts to value your future losses.
• Negotiate with insurance adjusters to push back against low offers.
• Handle disputes over how much time you were really entitled to miss work.
• File a lawsuit and represent you in court if needed, protecting your rights under comparative fault rules.

With legal representation, you significantly increase your chances of recovering the full amount you deserve.