Can I Seek Compensation for Loss of Earning Capacity?

Posted on behalf of James Lynch on September 12, 2019  in Personal Injury News. Updated on March 2, 2022

compensation for loss of earning capacityIf you are injured in an accident caused by the negligent actions of another, you have the right to be made whole again. You should be fully compensated for the damages that you incur. While some of these damages are easier to calculate – such as the cost to repair your vehicle or the medical expenses you have incurred – others, like your loss of earning capacity are more difficult to prove.

The experienced New Jersey personal injury lawyers at Lynch Law Firm, PC can discuss how loss of earning capacity is calculated after an accident and whether you may be eligible for these damages. Learn more about your legal options during a free, no obligation consultation.

Defining Loss of Earning Capacity

Loss of earning capacity is the income that you will reasonably lose because of your injuries. This is a different type of damage than lost income. Lost income refers to the amount of wages and benefits you have lost from being unable to work while you recover from your injuries.

Your loss of earning capacity is the value of the loss of your future wages. For example, if you were in a car accident that caused you to suffer a severe injury or disability, you may not be able to return to work in the same capacity or work at all. Your claim for loss of earning capacity would be based on the wages that you otherwise would have expected to earn in the future had you not been hurt in the accident.

How Loss of Earning Capacity Is Calculated

Loss of earning capacity are not calculated based on your actual earnings, before or after the injury. These damages are calculated based your ability to earn money after an injury. There are several factors that may be considered when determining loss of earning capacity, such as:

  • Age
  • Health
  • Education
  • Skills
  • Prior work history
  • Experience in your field
  • Life expectancy
  • Occupation
  • Reduction in your actual earnings
  • Weaknesses and degenerative changes caused by your injury
  • Record of promotions and raises
  • Advancements in your field
  • Current market values and wage rates

Ultimately, these factors could be used to calculate the difference between the estimate of what your earnings would have been had you not been injured and what they are now.

What You Need to Prove Loss of Earning Capacity

Loss of earning capacity can be very difficult to prove because it is often subjective and may require expert testimony. In order to recover damages, you will need to present proof of the following:

  • The other party’s negligence caused your accident
  • Your future earnings are impaired because of the injuries you sustained in the accident
  • What your earning capacity would have reasonably been had the accident not occurred
  • What your projected future earnings will now be because of your injuries

In addition to having an expert witness testify about your loss of earning capacity, employment records and tax returns may help substantiate the amount of your damages.

Need Legal Help? Contact Us Today

If you were injured in an accident and your ability to earn a living was compromised, it is important to seek legal help. Our team at the Lynch Law Firm, PC are prepared to file a personal injury claim on your behalf and seek compensation for all the damages that you have sustained. Contact us to schedule your free consultation at no risk or obligation to you. There are no upfront fees for our services unless you win.

Gives us a call at (800) 518-0508 to get started. We are available to discuss your situation 24/7.

* Results may vary depending on your particular facts and legal circumstances.

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