Lost Wages vs. Loss of Earning Capacity

Lost Wages & Earning Capacity Damages in a Personal Injury Case

After a serious injury, you may miss work and, in severe cases, lose the ability to earn income at the level you once did.

Personal injury claims address the financial impact of work-related consequences of injury through two forms of compensation: lost wages and loss of earning capacity.

Lost wages cover the income losses you already suffered due to your injury.

Loss of earning capacity compensates you for your diminished ability in the future to earn income and perform as you were able prior to being injured.

In a nutshell, lost wages represents income you have already lost, while loss of earning capacity represents money you expect to lose in the future.

A full and fair settlement should include consideration for both your incurred and expected financial losses suffered as a result of your personal injury.

If you suffered a serious injury that impacted your ability to work, speak with our legal team to calculate what you're actually owed.

Damages in Personal Injury Cases

Personal injury law allows you to seek compensation for both economic and non-economic losses caused by someone else's negligence.

Economic damages cover your measurable financial losses.

Non-economic damages compensate your intangible suffering.

Economic Damages:

• Medical expenses (past and future treatment costs)
• Lost wages from missed work
• Loss of earning capacity from permanent disabilities
• Property damage to your vehicle or belongings
• Out-of-pocket costs like home modifications and transportation
• Rehabilitation and therapy expenses

Non-Economic Damages:

• Pain and suffering from your injuries
• Emotional distress and mental anguish
• Loss of enjoyment of life activities
• Loss of consortium affecting your spouse
• Disfigurement and permanent scarring
• Reduced quality of life

Your total entitled compensation reflects all these losses combined.

Lost wages and loss of earning capacity represent two of the most significant economic damages in serious injury cases.

The value of which depends on your income and nature of injury.

At Lawsuit Legal our personal injury attorneys can help you determine how much you're owed after injury and will fight to help you get paid as much as possible as fast as possible.

 

 

 

Calculating Your Reduced Ability to Earn Income

After being seriously hurt, loss of earning capacity addresses the expected income losses due to your diminished ability to work.

To determine the value of loss of earning capacity damages in your case requires understanding what you were earning, how your injuries limit your ability to work and affect long-term earning potential.

What Determines Your Earning Capacity Loss

Unlike lost wages, which can be calculated in a lump sum, determining the value of loss of earning capacity damages involves looking at pre-injury income and how your injuries affect your ability to earn in the future.

Your Pre-Injury Earnings:

• Salary, wages, and bonus history
• Career advancement pattern and promotions
• Industry-specific earning trends
• Education and specialized training
• Years of experience in your field

Your Post-Injury Limitations:

• Permanent physical disabilities from your injury
• Cognitive impairments affecting job performance
• Reduced work hours you can physically handle
• Occupations you can no longer perform
• Reduced productivity in your current role

Your Work Life Expectancy:

• Your age at time of injury
• Years until planned retirement
• Industry-specific retirement ages
• Health factors affecting work longevity