Lost Earning Capacity After a Truck Accident
Lost earning capacity compensates you for the reduced ability to earn money in the future because of your injuries. It differs from lost wages, which cover time already missed. It is usually proved with medical evidence, vocational experts and economists who estimate your lifetime earnings with and without the injury.
How is lost earning capacity different from lost wages?
Lost wages are the pay you have already lost while recovering, and are usually easy to document with pay records. Lost earning capacity looks forward: if your injuries mean you cannot return to your job, must work fewer hours, or lose chances of promotion, the claim covers that future loss, even if you were not working at the time of the crash.
How is it calculated?
- Medical evidence of permanent restrictions.
- A vocational expert's assessment of what work you can still do.
- Your earnings history, education, skills and career path.
- An economist's projection of lifetime earnings, reduced to present value.
- Lost benefits such as pension and health insurance.
Who has the biggest earning capacity claims?
Younger people with long careers ahead, workers in physical jobs, and people with serious injuries such as brain or spinal cord injuries often have the largest claims. For children and students, experts estimate likely earnings from education and family background.
Frequently asked questions
What is lost earning capacity?
Compensation for a reduced ability to earn money in the future because of injuries from the crash, separate from wages already lost.
Can I claim lost earning capacity if I wasn't working?
Yes. The claim is about your ability to earn, so students, homemakers and people between jobs can still claim if their future earning ability has been reduced.
Who calculates lost earning capacity?
Usually vocational experts and economists, using medical evidence, your work history and education to project lifetime earnings.
Are future lost earnings reduced to present value?
Usually, yes. Because the money is paid now for losses spread over years, economists discount it to present value, following the rules of the state.
Does lost earning capacity include benefits?
It can include lost employment benefits such as retirement contributions and health insurance, depending on the evidence and state law.