Can I Recover Lost Wages If a Car Wreck Keeps Me From Working in Alabama?

Can I Recover Lost Wages If a Car Wreck Keeps Me From Working in Alabama?

You were injured in an Alabama car wreck. Your doctor tells you that you cannot return to work until your injuries improve.

Meanwhile, the bills keep coming.

You may have used your vacation time, exhausted your sick leave, or gone several weeks without a paycheck. Perhaps you have returned to work but can no longer perform the physical duties of your former job.

The insurance company may be willing to discuss your medical bills but question whether it is responsible for your lost income.

Under Alabama law, a person injured through another driver’s negligence may recover compensation for lost earnings and, when supported by the evidence, a reduction in future earning capacity.

However, these are two different categories of damages, and understanding the distinction is important.

Can I Recover the Wages I Lost While Recovering From a Car Wreck?

Generally, yes, if you establish that the other driver’s negligence caused your injuries and that those injuries prevented you from working.  For example, suppose you earn $1,000 per week and miss six weeks of work because your physician restricts you from returning to your job.

Your lost wages during that period would ordinarily be $6,000, assuming you would otherwise have worked and earned that amount.

But the calculation is not always that simple.

An employee may receive overtime, bonuses, commissions, or irregular wages. A self-employed person may experience lost business income rather than missing a regular paycheck.  The evidence must establish what the person reasonably would have earned if the collision had not occurred.

What Is the Difference Between Lost Wages and Loss of Earning Capacity?

This distinction is especially important when an injury produces permanent restrictions.

Lost earnings generally refer to income the injured person would have earned during a period when the accident prevented the person from working.

Loss of earning capacity concerns a reduction in the person’s ability to earn a living because of the injury.

Consider two examples.

A warehouse employee suffers a fractured leg in a car wreck. After surgery and rehabilitation, the employee returns to the same job at the same wages without permanent restrictions.  The employee may have a substantial claim for wages lost during recovery but no continuing reduction in earning capacity.

Now consider a construction worker who suffers a permanent back injury. The worker can no longer perform heavy construction labor and must accept substantially lower-paying employment.  That worker may have claims for both past lost earnings and diminished future earning capacity.

The Alabama Supreme Court explained this distinction in Carnival Cruise Lines, Inc. v. Snoddy, 457 So. 2d 379, 381–82 (Ala. 1984).

What Did the Alabama Supreme Court Decide in Carnival Cruise Lines v. Snoddy?

Thomas Snoddy was a high school mathematics teacher who suffered a serious leg injury after falling from an upper bunk aboard a cruise ship.  His injuries required medical treatment and rehabilitation, causing him to miss approximately eleven weeks of school and two terms of summer-school teaching.  Snoddy eventually returned to his teaching position at his previous salary and continued receiving raises; however, his physician testified that he had permanent physical impairment involving his injured leg.

Snoddy presented testimony from an economic expert who attempted to calculate diminished future earnings using his medical impairment rating.  The Alabama Supreme Court explained that physical impairment and loss of earning capacity are not necessarily the same thing.

A permanent injury may have very different economic consequences depending upon the injured person’s occupation.  The Court emphasized that, except in particularly obvious cases, the jury needs evidence connecting the physical impairment to a reduction in the person’s ability to earn a living.  The Court also concluded that the economist’s particular calculation improperly treated the medical impairment percentage as a basis for projecting economic loss without an adequate evidentiary foundation.

Nevertheless, the Court affirmed the judgment because the trial court did not submit future loss of earning capacity to the jury as an element of damages.

Why Does Snoddy Matter After a Car Wreck?

The decision establishes an important principle for Alabama personal-injury claims.

A physician’s impairment rating does not automatically establish the percentage by which an injured person’s earning capacity has been reduced.

A person with a relatively modest physical impairment may suffer a substantial vocational loss if the injury prevents a return to a physically demanding occupation.  Conversely, someone with a significant impairment may remain capable of performing the same job at the same wages.

The injured person’s actual work duties, education, experience, physical restrictions, and available employment opportunities matter.

What Evidence Do I Need to Prove Lost Wages?

A claim for past lost earnings should be supported by reliable documentation.

Relevant evidence may include:

• Pay stubs, W-2 forms, tax returns, and payroll records.
• A statement from the employer confirming wages, work schedules, and time missed.
• Medical records establishing the injuries and work restrictions.
• Documentation of overtime, commissions, bonuses, or other compensation.
• Records showing when the employee returned to work and whether hours or wages changed.

For an employee with regular wages, the calculation may be straightforward.  For someone with variable earnings, several months or years of income records may be needed to establish a reasonable earnings history.

The objective is to demonstrate the income actually lost because of the accident rather than relying upon unsupported estimates.

What If I Used Sick Leave or Vacation Time Instead of Losing a Paycheck?

Using accumulated sick leave or vacation time raises a related but distinct question.

An employee may continue receiving regular pay during recovery but exhaust leave that otherwise would have remained available, so the fact that the employee received wages does not necessarily resolve whether the accident caused a compensable economic loss.

The analysis may involve the nature of the leave benefits, whether the employee lost accumulated paid time, the applicable collateral-source rules, and whether the claimed loss can be established without duplicating damages.

An employee should preserve records showing the amount and type of leave used, how the leave was accrued, and whether the employer requires repayment or restoration.

Receiving paid leave should not be treated as an automatic reason to abandon a wage-loss claim, but neither should the same economic loss be counted twice.

What If I Am Self-Employed?

Self-employed individuals may also recover accident-related economic losses when those losses are adequately established.  Consider an independent contractor who cannot perform scheduled jobs because of injuries sustained in a collision, or a small-business owner whose physical limitations prevent the owner from performing services that generate business income.

These claims may require additional financial evidence, including tax returns, profit-and-loss statements, invoices, contracts, canceled appointments, and business records.

An important distinction is that lost business revenue is not necessarily the same as lost personal earnings or profits.

For example, a contractor who loses a $10,000 job may have avoided substantial material, subcontractor, and operating expenses.  The recoverable economic loss must be evaluated using the actual financial circumstances rather than assuming that the entire contract price represents lost income.

Can I Recover Lost Earning Capacity Even If I Was Not Working When the Accident Happened?

Potentially, yes.

An injured person does not necessarily have to be receiving a paycheck on the day of the collision to have earning capacity.  This issue arose in Bishop v. Poore, 475 So. 2d 486 (Ala. 1985), an automobile-collision case.

In Bishop, the plaintiff sought compensation for diminished earning capacity even though he was not working or receiving wages when the accident occurred.  The Alabama Supreme Court recognized that unemployment at the time of injury does not, by itself, make evidence of earning capacity irrelevant; however, the Court concluded that the record lacked sufficient evidence of a permanent injury or an actual reduction in future earning capacity. The physician had testified only that permanent impairment was possible.

The Court relied upon Snoddy in explaining the need for evidence connecting physical impairment to economic consequences.

The practical lesson is that a person who is unemployed, between jobs, or temporarily out of the workforce may still have earning capacity, but the claim must be established through evidence rather than speculation.

What If I Return to Work but Cannot Earn as Much as Before?

Returning to work does not necessarily eliminate a claim for diminished earning capacity.

An injured person may return to employment but be unable to perform the same duties, work the same hours, or pursue the same opportunities.  Consider a commercial truck driver who develops permanent cervical restrictions after a collision.  The driver may be able to perform a less physically demanding job but no longer qualify for or tolerate long-distance commercial driving.

The difference between the worker’s preinjury earning capacity and postinjury earning capacity may become significant.

The same issue can arise for nurses, construction workers, mechanics, warehouse employees, and other people whose occupations require substantial physical activity.

How Can a Vocational Expert Help Prove Loss of Earning Capacity?

In some cases, a vocational expert may help explain how permanent medical restrictions affect employment opportunities, as a vocational evaluation may consider the injured person’s education, work history, transferable skills, physical limitations, and labor-market opportunities.

The Alabama Supreme Court addressed vocational testimony in Hagler v. Gilliland, 292 So. 2d 647 (Ala. 1974).

That case arose from an automobile accident. The plaintiff presented testimony from an Alabama State Employment Service manager who evaluated her loss of employability.  The expert considered her background, physical condition, medical information, and employment opportunities.

The defendant challenged the admissibility of his testimony, but the Supreme Court recognized that employability and earning capacity are matters on which a properly qualified vocational expert may provide relevant testimony. The Court upheld the admission of the evidence.

Why Is Vocational Evidence Important?

A physician may determine that a person cannot lift more than twenty pounds or cannot stand for prolonged periods, but the physician may not be in the best position to evaluate how those restrictions affect the person’s employment opportunities.

A vocational expert can help connect the medical limitations to the actual demands of work.

In an appropriate case, an economic expert may then assist in calculating the financial consequences of a properly established loss of earning capacity.  The distinction remains important: Medical evidence establishes physical limitations; vocational evidence may establish their effect on employability; and economic evidence may help quantify the resulting loss.

Not every case requires all three types of expert testimony.

What If I Am Permanently Unable to Return to My Former Occupation?

A permanent inability to return to a previous occupation can substantially increase the economic consequences of a car wreck.  Consider a 55-year-old employee who has spent thirty years performing physically demanding work.  After a serious collision, the employee develops permanent restrictions that prevent returning to that occupation.

The employee’s age, education, work history, transferable skills, and remaining work-life expectancy may all become relevant.  The analysis may require determining what the employee probably would have earned without the injury and what the employee can reasonably earn afterward.

These claims often involve substantially more evidence than a straightforward request for several weeks of missed wages, but permanent inability to return to one occupation does not automatically establish total loss of earning capacity. The injured person’s remaining earning ability must still be evaluated.

What Should I Do If My Car Wreck Injury Is Keeping Me From Working?

An injured person should maintain accurate records of employment and income losses.

Medical providers should receive a clear description of the physical requirements of the person’s actual job.

For example, a physician evaluating a warehouse employee should understand whether the work requires frequent lifting, climbing, bending, or prolonged standing.  A job title alone may not adequately describe those duties, so the injured person should make sure their treating physicians are aware of all the things they do at work.

The employee should also preserve written work restrictions, payroll records, communications concerning modified duties, and records of unsuccessful attempts to return to work.  These documents may become particularly important if the insurance company later disputes whether the injury actually prevented the employee from earning income.

Lost Wages Are Only Part of the Economic Consequences of a Serious Car Wreck

An automobile collision may keep someone out of work for several weeks. In more serious cases, permanent restrictions may prevent the person from returning to the occupation that provided a livelihood.  Alabama law recognizes the distinction between lost earnings and diminished earning capacity.

As Snoddy, Bishop, and Hagler demonstrate, a claim for future economic loss requires evidence connecting the injury to the person’s ability to earn a living.

The most important question is not simply how much money the injured person earned before the accident. It is how the accident changed that person’s ability to work and earn income.

Talk With an Alabama Car Wreck Lawyer

If an Alabama automobile accident has prevented you from working or left you with permanent restrictions, your claim may involve more than medical expenses and pain and suffering.

At Powell & Denny, P.C., we help injured Alabamians evaluate personal-injury claims involving disputed medical causation, preexisting conditions, permanent restrictions, and loss of earning capacity.  We also understand how serious injuries can affect an individual’s ability to return to work and may raise related workers’ compensation or Social Security Disability questions, so if you or a loved one has been injured in an Alabama car wreck and you have questions about what to do— don’t hesitate to contact and speak with one of the experienced Alabama Car Wreck attorneys at Powell and Denny today for a free consultation. Appointments are available in person, or virtually via Zoom if more convenient.  Powell and Denny would appreciate the opportunity to help.  And remember, there is no fee unless you win.

Powell & Denny: We Work When You Can’t.

Recommended Reading

• What Damages Can I Recover After a Car Wreck in Alabama?
• The Insurance Company Says the Car Wreck Didn’t Cause My Injury. How Do I Prove It Did?
• Can I Recover Compensation for Chronic Pain After an Alabama Car Wreck?
• What Should I Do After a Car Accident While Working?