Texas Lost
Wages Calculator

Texas uses modified comparative fault with a 51% bar and has no state income tax. Uniquely, Texas is the only state where employers can opt out of the workers' compensation system entirely — these 'non-subscribers' are not protected by the exclusive remedy doctrine and can be sued directly for workplace injuries.

Approximately 20-30% of Texas employers are non-subscribers. For injured workers at non-subscriber employers, lost wages claims go through the tort system rather than workers' comp, and the employer cannot assert common-law defenses like contributory negligence and assumption of risk.

Texas gives injured claimants 2 years to file a personal injury lawsuit (Tex. Civ.

Prac. & Rem.

Code §§ 16.003, 74.251, 16.004). This statute of limitations applies to the underlying tort claim that includes lost wages as a component of damages.

Missing this deadline almost certainly means losing the right to recover any compensation, including lost wages. Workers' compensation claims follow a separate timeline under Tex.

Lab. Code § 401.001 et seq..

Texas's modified comparative fault system (51% bar) means you can recover lost wages as long as your fault does not reach 51%. If you are 50% at fault, you still recover — reduced by that percentage.

At 51% or above, you recover nothing. This creates a sharp cutoff that the defense will try to exploit, making the fault determination the most contested issue in many Texas lost wages cases.

The state minimum wage in Texas is $7.25/hr, though most lost wages claimants earn well above the minimum. The minimum wage matters primarily as a floor for workers' compensation benefit calculations and as a reference point for low-wage workers whose total compensation (including tips, overtime, and benefits) may substantially exceed their base rate.

Texas is the only state where workers' compensation is optional for most employers (Tex. Lab.

Code § 406.002). About 30% of Texas employers are 'non-subscribers,' meaning injured employees can sue them in civil court for full lost wages without WC limitations.

For subscribing employers, the Texas Division of Workers' Compensation (DWC) administers claims with a maximum weekly benefit of $1,066 (2024). Lost wages PI cases are filed in the District Court — Harris County District Court (Houston) and Dallas County District Court are primary venues.

Texas uses a modified comparative fault rule with a 51% bar (Tex. Civ.

Prac. & Rem.

Code § 33.001). The Texas Workforce Commission enforces wage payment laws.

Under Texas's modified comparative fault system, you can recover lost wages if your fault is below 51%. Your award is reduced by your percentage of fault.

For example, if you are 30% at fault and your total lost wages are $100,000, you recover $70,000. At 51% fault or above, you recover zero.

Given this cutoff, both the fault determination and the total loss amount are critical — a higher documented loss means more recovery even after the percentage reduction.

Base pay and salary are the most straightforward components. For hourly workers, this is your regular hourly rate multiplied by the hours you would have worked during the disability period.

For salaried employees, it is your annual salary prorated for the time missed. Employers typically verify your pay rate, schedule, and employment dates through a wage verification letter, which your attorney can request or subpoena if the employer refuses to cooperate.

Overtime pay is recoverable if you have a documented history of working overtime. Texas courts typically look at 6 to 12 months of pay records to establish your average overtime hours.

If you regularly worked 10 hours of overtime per week at 1.5× your regular rate ($7.25/hr minimum), those lost overtime earnings add significantly to the claim. Bonuses and commissions are also recoverable where you can demonstrate a consistent pattern — annual performance bonuses, quarterly sales commissions, and production incentives all qualify if supported by pay history.

Employer-provided benefits are a frequently overlooked but often substantial category. Recoverable benefits include: the employer's share of health insurance premiums (often $500–$1,500/month for family coverage), retirement plan contributions (401k matches, pension accruals), paid time off that accrued but cannot be used, life insurance and disability insurance premiums paid by the employer, company vehicle or mileage allowances, tuition reimbursement, and any other fringe benefits specified in your employment agreement.

These benefits can add 25–40% to the base pay calculation.

Future earning capacity is the most complex and often the most valuable category. In cases involving permanent disability or long-term impairment, Texas allows recovery for the diminished ability to earn income over your remaining work life.

This requires expert testimony — typically a forensic economist who calculates the present value of future lost earnings, adjusted for work-life expectancy, expected wage growth, inflation, and the discount rate for present value. A vocational rehabilitation specialist may also testify about the specific occupations the claimant can and cannot perform after the injury.

Texas's non-subscriber system creates two entirely different paths for lost wages recovery. Workers' comp subscribers: employees receive TTD at 70% of the average weekly wage (higher than most states) through the workers' comp system.

Non-subscribers: the injured worker sues the employer directly in tort. Non-subscribers lose their common-law defenses (contributory negligence, fellow servant rule, assumption of risk), making them easier to sue — but the worker must prove the employer's negligence caused the injury.

This dual system is unique to Texas.

The basic lost wages formula in Texas is: (Daily/Weekly wage × Days/Weeks missed) + Lost overtime + Lost bonuses + Lost benefits + Future earning capacity (if applicable). For hourly workers earning $7.25/hr or more, multiply your hourly rate by your average daily hours.

For salaried employees, divide your annual salary by 260 working days (52 weeks × 5 days). This produces a daily rate that is then multiplied by the number of work days missed.

The period of disability must be established by medical evidence — not by your own estimate of when you felt well enough to return to work. Texas courts require a treating physician's opinion (or an independent medical examiner's report) documenting when the disability began, whether it was total or partial, and when you reached maximum medical improvement (MMI).

If you returned to work in a reduced capacity (part-time or light duty), you can claim the difference between your pre-injury earnings and your actual post-injury earnings as partial lost wages.

Texas has no state income tax, which narrows the spread between gross and net lost wages. Only federal income tax and FICA apply.

This makes the gross-to-net calculation simpler and reduces the defense's argument for a lower net figure. For a worker earning $75,000/year, the absence of state income tax means approximately $3,000–$5,000 more in annual take-home pay compared to a state with a median income tax rate.

Personal injury settlements for physical injuries are generally exempt from federal income tax under IRC § 104(a)(2), meaning the claimant keeps the full gross amount. Employment-related settlements (wrongful termination, discrimination) remain taxable at the federal level, but the absence of Texas state income tax reduces the overall tax bite compared to settlements in income-tax states.

This tax advantage should be factored into settlement negotiations — a $100,000 employment settlement in Texas nets more after tax than the same settlement in a state with a 5–10% income tax.

Texas uniquely allows employers to opt out of the workers' compensation system entirely. Approximately 20–30% of employers are "non-subscribers." If your employer opted out, you pursue lost wages through a direct tort lawsuit — and the employer loses common-law defenses like contributory negligence and assumption of risk.

This often makes non-subscriber claims easier to win, and you can potentially recover 100% of your lost wages rather than the capped workers' comp benefit. If your employer does participate in workers' comp, TTD benefits are paid at the statutory rate (typically 66⅔%–70% of the average weekly wage).

Understanding which system covers your employer is the essential first step.

The strength of a lost wages claim in Texas depends almost entirely on documentation. Insurance adjusters and defense attorneys will challenge every component of your claim, and the burden of proof is on you to demonstrate what you would have earned but for the injury.

Undocumented claims are routinely discounted by 30–50% or denied entirely.

Essential documents for a Texas lost wages claim include: (1) Pay stubs for at least the 6 months before the injury, showing regular hours, overtime, deductions, and year-to-date totals. (2) W-2 forms or complete tax returns for the past 2–3 years, establishing your earning trajectory and any upward trend.

(3) An employer verification letter confirming your job title, start date, hourly rate or salary, regular schedule, overtime history, and benefits package. If your employer refuses to provide this voluntarily, your attorney can obtain it through formal discovery or subpoena.

(4) Medical records from your treating physician documenting the nature of the injury, the period of total disability, any restrictions during partial disability, and the date of maximum medical improvement.

For overtime claims, the most persuasive evidence is a consistent pattern over multiple months or years. A claimant who worked 10 hours of overtime every week for the past year has a much stronger claim than one who worked overtime sporadically.

Texas courts generally look at the 6–12 months before the injury to establish an overtime baseline, and any material deviation (e.g., seasonal variations, a recent promotion) should be documented and explained. Similarly, bonus and commission claims require evidence of the performance metrics and a track record of meeting or exceeding them — one-time windfalls are less persuasive than recurring performance-based pay.

For future earning capacity claims, you will need expert reports from: (1) a forensic economist who calculates the present value of future lost earnings based on your work-life expectancy, expected wage growth, inflation, and a discount rate; and (2) a vocational rehabilitation specialist who assesses which occupations you can and cannot perform post-injury, given your education, training, physical limitations, and the Texas labor market. These experts typically charge $5,000–$15,000 for their analysis, but their testimony is essential for claims involving permanent impairment.

Courts in Texas will not award future earning capacity damages based solely on the plaintiff's testimony — expert support is required.

If you were injured on the job in Texas, you may have two potential paths to recover lost wages: workers' compensation and a third-party personal injury claim. Workers' comp is no-fault and pays 66⅔% of your average weekly wage; a third-party tort claim requires proving fault but can recover 100% of all lost income.

The two systems operate under fundamentally different rules, have different deadlines, and both may run simultaneously.

Workers' compensation in Texas is optional for employers — a unique feature that creates two entirely different systems. If your employer carries workers' comp (a "subscriber"), you receive TTD benefits at 66⅔%–70% of your average weekly wage, and workers' comp is the exclusive remedy against your employer.

If your employer opted out (a "non-subscriber"), you can sue the employer directly in tort for full lost wages. Non-subscriber employers lose their common-law defenses (contributory negligence, fellow servant rule, assumption of risk), making these tort claims generally easier to win.

Approximately 20–30% of Texas employers are non-subscribers — always verify your employer's status before deciding which path to pursue.

The key differences between the two paths in Texas: (1) Workers' comp pays a percentage (66⅔%) of your average weekly wage; a tort claim can recover 100% of all lost income including overtime, bonuses, and benefits. (2) Workers' comp requires no proof of fault; a tort claim requires proving the defendant's negligence.

(3) Workers' comp provides faster payment (often within 2–4 weeks of the injury report); a tort claim can take months or years to resolve. (4) Workers' comp does not award future earning capacity, pain and suffering, or other non-economic damages; a tort claim can.

(5) Workers' comp has its own filing deadline under Tex. Lab.

Code § 401.001 et seq.; the tort claim follows the 2 years statute of limitations (Tex. Civ.

Prac. & Rem.

Code §§ 16.003, 74.251, 16.004).

When a third-party tort claim exists alongside a workers' comp claim, Texas law generally gives the workers' comp insurer a right of subrogation — meaning the insurer can recover the TTD benefits it paid from your tort settlement. This prevents double recovery but requires careful coordination between your workers' comp claim and your tort claim.

Your attorney should negotiate the subrogation lien to maximize your net recovery. In some Texas cases, the subrogation lien can be reduced by the attorney fees and costs incurred in pursuing the tort claim.

The statute of limitations for a personal injury claim in Texas is 2 years (Tex. Civ.

Prac. & Rem.

Code §§ 16.003, 74.251, 16.004). The clock typically starts on the date of injury, though the discovery rule may delay the start date for injuries that are not immediately apparent — such as toxic exposure, medical malpractice, or defective product injuries where harm develops gradually.

This is the deadline for the underlying tort claim; lost wages are a damage component within that claim, not a separate cause of action with its own deadline. Filing the claim preserves your right to recover lost wages; failing to file eliminates it entirely.

Texas recognizes several tolling provisions that can pause the statute of limitations in specific circumstances. The most common include: (1) the plaintiff is a minor at the time of injury — the clock generally does not start until the minor turns 18; (2) the plaintiff is mentally incapacitated and unable to manage their own legal affairs; (3) the defendant has left Texas or is otherwise unavailable for service of process; and (4) the defendant actively concealed the wrongdoing through fraud.

Military service may also toll the deadline under the federal Servicemembers Civil Relief Act. These tolling provisions are technical and fact-specific — if you believe one may apply, consult a Texas attorney to confirm before relying on it.

Workers' compensation claims follow separate deadlines under Tex. Lab.

Code § 401.001 et seq.. You must generally report a workplace injury to your employer within 30 days (though some states allow slightly longer) and file a formal workers' comp claim within the statutory deadline (typically 1–2 years, depending on the type of injury and the state).

Employment-related claims add another layer of deadlines: federal Title VII and ADA claims require filing an EEOC charge within 180–300 days of the discriminatory act, while state-law employment claims follow Texas's general limitations periods for the applicable cause of action. Because of these overlapping and sometimes inconsistent deadlines, consulting an attorney promptly is the single best way to preserve all of your lost wages recovery options in Texas.

Several common situations create unique lost wages calculation challenges in Texas: self-employment and gig work, tipped wage income, and holding multiple jobs at the time of injury. Each scenario requires different documentation and valuation methods under Texas law.

Self-employed and gig workers: If you are self-employed, an independent contractor, or a gig worker in Texas, your lost wages calculation is more complex than for W-2 employees. Courts calculate self-employment lost income by averaging 2–3 years of tax returns (Schedule C, 1099 forms) to establish a baseline.

Irregular income, seasonal fluctuations, and business growth trajectories all factor into the analysis. You should also include lost profits attributable to your absence — if your business lost revenue because you were unable to work, that lost profit is recoverable as economic damages.

The key is documentation: detailed profit-and-loss statements, client contracts, and bank records that corroborate your tax returns.

Wrongful termination claims: If you were wrongfully terminated in Texas, your lost wages include salary and benefits lost between termination and resolution, plus front pay if reinstatement is not feasible. The duty to mitigate requires reasonable efforts to find comparable employment — your damages will be reduced by interim earnings.

Texas courts will not penalize you for refusing a demotion or substantially inferior position. Because Texas has no state income tax, wrongful termination settlements yield a higher net recovery after federal taxes than the same settlement would in an income-tax state — a meaningful advantage that should be factored into your settlement analysis.

Tipped employees: For tipped workers in Texas, lost wages include both the base wage and historical tip income. The calculation uses your average total compensation over a representative period (typically 6–12 months).

Tips must be documented through employer records, tax returns showing reported tip income, and credit card tip records. Texas has its own minimum wage of $7.25/hr, but the lost wages calculation is based on your actual total compensation, not the minimum.

Courts will draw adverse inferences against employers who fail to maintain tip records as required by law.

Multiple jobs and side income: If you held more than one job at the time of injury, you can claim lost wages from all positions — not just the job where the injury occurred. Document each position separately with pay stubs and employer verification.

For side income (freelance work, rental income from active management, coaching or tutoring), the key is showing that the income was regular and would have continued but for the injury. Sporadic or speculative future income is less likely to be awarded.

Cross-reference: use our statute of limitations tool for Texas to verify your filing deadline, and our divorce cost estimator if lost wages are relevant to a pending family law matter.

You should consult a Texas attorney if your lost wages exceed a few thousand dollars, if the at-fault party or their insurer disputes liability or the extent of your injuries, if your employer or their workers' comp insurer is pushing back on a claim, or if you have been wrongfully terminated. Most personal injury attorneys in Texas work on contingency — they charge no upfront fee and take a percentage (typically 33–40%) of the recovery only if you win.

This makes the initial consultation essentially risk-free and aligns the attorney's incentives with yours.

An attorney can significantly increase the value of your lost wages claim by identifying categories of lost income you may have overlooked (benefits, bonuses, future earning capacity, household services), retaining forensic economists and vocational experts whose testimony supports larger awards, negotiating with insurance adjusters who are professionally trained to minimize payouts, handling the subrogation lien from your workers' comp insurer to preserve your net recovery, and ensuring all filing deadlines are met — including the 2 years statute of limitations (Tex. Civ.

Prac. & Rem.

Code §§ 16.003, 74.251, 16.004) and any shorter workers' comp or employment law deadlines.

The Texas State Bar Association maintains a lawyer referral service to connect you with qualified personal injury and employment attorneys in your area. When selecting an attorney, ask about their experience with lost wages claims specifically — not just personal injury generally — and whether they have access to forensic economists and vocational experts.

Key statutory references for your Texas lost wages claim: Tex. Lab.

Code § 401.001 et seq. (workers' comp); Tex.

Civ. Prac.

& Rem. Code § 16.003 (PI statute of limitations); Tex.

Lab. Code § 62.051 (minimum wage).

Lost wages are one component of a full personal injury damages calculation. The Texas Personal Injury Settlement Estimator estimates your total settlement including pain and suffering and comparative fault adjustments.

The Texas Medical Lien Calculator shows how medical liens reduce your net recovery. To verify your filing deadline before the statute of limitations closes your claim, use the Texas Statute of Limitations Lookup.

For a case-specific evaluation, find a Texas personal injury attorney.