Salaries Workers Entitled to Lost Compensation Even Though Employer Still Pays Them

You are entitled to recovery of lost wages after being involved in an accident. Sometimes insurance carriers take the position that you should not be entitled to recover any compensation for the time you were off work if you are salaried.

This position is inconsistent with Washington law. The insurance company does not get the benefit of your agreement with your employer – you do. We have been successful in moving to have Washington courts uphold this rule and award loss compensation even though the injured person was a salaried employee.

There is an interesting case out of Montana that similarly holds unemployment benefits also constitute a collateral source and may not be set off (or subtracted) from the at-fault person or the at fault person’s insurance company’s obligation to pay the injured person. The courts held: “When a collateral source mitigates the employee’s loss, the employees should receive the benefit . . . We conclude that between the employer, whose actions caused this injury, and the employee, who most likely suffered other non-compensable losses, the burden should be placed on the employer.” That quotation is taken from Vortex Fishing Systems, Inc. v. Far. The case was decided in 2001.

If you have questions, please contact us.