What Is Loss of Earning Capacity in a Texas Personal Injury Case?~4 min read
- Loss of earning capacity refers to how an injury affects your ability to earn income in the future.
- It is different from lost wages, which generally cover income you have already missed because of your injury.
- You could have a loss of earning capacity claim even if you are able to return to work after an accident.
- Your work history, education, skills, injuries, and physical or cognitive limitations could be considered when determining your loss.
- Evidence from medical, vocational, or financial professionals could help show how your injuries will affect your future earning potential.
Lost Wages and Earning Capacity Are Different
If you are seriously injured in a car accident, truck accident, or another incident caused by someone else’s negligence, your immediate concern might be the paychecks you miss while recovering. Those lost wages are important, but they may represent only part of the financial impact of your injury.
Loss of earning capacity looks beyond what you have already lost. It focuses on how the injury has reduced your ability to earn money in the future.
How Is Loss of Earning Capacity Determined?
There is no single calculation that applies to every Texas personal injury case. Your claim will depend on your circumstances before the accident and how your injuries have changed your ability to work.
Factors that could be considered include your earnings before the injury, age, education, professional training, occupation, work history, skills, experience, and the severity of your injuries. Your physical or cognitive restrictions and your ability to return to your previous occupation will also be important.
You Do Not Have to Be Completely Unable to Work
One misconception about loss of earning capacity is that you must be permanently disabled or unable to work at all. That is not the case.
Suppose you worked in construction before an accident and earned a good living performing physically demanding work. If a permanent back injury prevents you from returning to construction but you are able to take a less physically demanding job at a lower salary, the difference in your earning potential could become part of your claim.
What Evidence Will Support Your Claim?
A loss of earning capacity claim requires more than saying you believe you will earn less in the future. Your claim should be supported by evidence showing how your injuries affect your ability to work and earn income.
Employment and financial records could establish your earnings and career history before the accident. Medical records and testimony could establish permanent restrictions, while vocational professionals and medical doctors could evaluate the types of jobs you are capable of performing after the injury.
In some cases, economists or other financial professionals will analyze projected earnings and the financial effect of reduced earning capacity over time. The evidence needed will depend on your injuries, occupation, and expected career path.
Why Future Earnings Matter After a Serious Injury
The financial impact of an accident does not necessarily end when your medical treatment is finished. A permanent injury could affect your income for years or even decades.
That makes it important to consider your long-term financial losses before resolving a personal injury claim. Accepting a settlement based only on your current medical bills and missed paychecks could overlook the income you will lose because your career has permanently changed.
Contact Springer Lyle Dameron & Harrison
If an injury has affected your ability to work or your future earning potential, Springer Lyle Dameron & Harrison will review how those losses should be addressed as part of your Texas personal injury claim. Contact Frank Lyle at 940-387-0404 or click here to contact us online.
Springer Lyle Dameron & Harrison is located at 1807 Westminster St., Denton, Texas 76205.
FAQs
Is loss of earning capacity the same as lost wages?
No. Lost wages generally refer to income you already missed because of your injury. Loss of earning capacity focuses on how your injury reduces your ability to earn income in the future.
Can I claim loss of earning capacity if I return to work?
Returning to work does not automatically eliminate a loss of earning capacity claim. If your injuries force you to work fewer hours, accept lower-paying work, give up certain job duties, or limit your future advancement, you could still have a loss.
How do you prove future loss of earning capacity?
Evidence could include your employment history, tax returns, wage records, medical records, education, professional qualifications, and testimony from health care providers regarding your physical or cognitive restrictions.
Frank Lyle
Frank Lyle is a veteran personal injury attorney and mediator with decades of experience. He is AV Preeminent rated by Martindale-Hubbell and has been selected as a Texas Super Lawyer multiple times. A past president of the Denton County Trial Lawyers Association, Mr. Lyle has represented hundreds of individuals in personal injury cases and insurance disputes. He is also the author of numerous legal articles and presentations.
