Yes. Texas law lets you recover income you have lost because of the injury and, if the injury limits your future work, lost earning capacity. You prove it with pay records and your doctors' work restrictions, and the amount is presented net of income taxes.
Lost wages cover the time you could not work: missed shifts, days spent at appointments, used sick and vacation time, and lost overtime or bonuses you would have earned. Lost earning capacity is the larger, future part: what the injury takes from your ability to earn over the rest of your working life, even if you go back to a job.
Proof does the work. Pay stubs, W-2s, tax returns, a letter from your employer confirming missed time and pay rate, and your doctors' notes restricting work are the core records. For future losses, a treating doctor's opinion about permanent restrictions and sometimes a vocational or economic expert carry the claim.
Texas has a specific rule about taxes. Civil Practice and Remedies Code section 18.091 requires evidence of lost earnings and lost earning capacity to be presented as a net loss after income taxes, and the court instructs the jury on whether the recovery is taxable. So the claim is built on take-home figures, not gross pay.
You may get some income replaced while the claim is pending. Personal Injury Protection pays replacement of lost income for income producers, regardless of fault, unless the coverage was rejected in writing. Short-term disability benefits through work may also apply.
Self-employed and gig workers can recover too, with different proof, such as tax returns, invoices, and bank records. Owsley Law Firm builds the wage claim from the first meeting and charges no fee unless it wins.
What to do, step by step
- Ask your employer for a letter confirming missed time, pay rate, and any lost overtime.
- Keep pay stubs from before and after the crash.
- Ask your doctor for written work restrictions and return-to-work dates.
- File for PIP income replacement if your policy includes PIP.
Used sick leave and vacation count as lost wages, because you used a benefit you would otherwise have kept.
Lost earning capacity does not require that you were earning at the time. A student or someone between jobs can recover for diminished capacity to earn in the future, supported by evidence of what they could have earned.
Time spent at medical appointments, physical therapy, and depositions is part of the wage loss when it costs you work hours.
Mistakes that cost people money
- Returning to full duty against medical advice to avoid missing pay without telling your doctor.
- Not documenting overtime, bonuses, or a promotion the injury cost you.
- Presenting gross figures when Texas requires net loss after taxes.
Related questions
Is a wage loss settlement taxable?
Damages for personal physical injuries are generally not taxable federally. Confirm your situation with a tax adviser.
What if I lost my job because of the injury?
The lost income and the effect on future earnings are part of the claim if the injury caused the job loss.
Can I recover if I am paid in cash?
Yes, but proof is harder. Bank deposits, client records, and testimony can help.
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