Lost Earning Capacity Explained


    In personal injury lawsuits, compensation can be awarded to the victim based on lost earning capacity. While you may think of this as being the same as a loss of income, it is in fact very different. It’s even possible that you could be entitled to both types of damages when it comes to seeking compensation for your injuries.


    Loss of Income vs. Lost Earning Capacity

    Loss of income is the loss of wages or benefits experienced due to an injury. This means that if the victim was in the hospital for a week and was then unable to return to work for six weeks, he or she has lost seven weeks’ worth of wages and benefits.

    Conversely, lost earning capacity means that the victim’s ability to earn an income has been diminished by the accident. For example, if the victim received permanent damage to his or her shoulder in a workplace accident and was employed as a roofer, this injury could impair the victim’s ability to continue working in that field.


    Lost Earning Capacity

    Also known as “impairment of earning power” and “future loss of earnings,” lost earning capacity involves a complex calculation in order to determine financial compensation. Because lost earning capacity can be much harder to determine or prove than loss of income, there is a particular formula used by personal injury attorneys and the courts to facilitate these claims.

    Some of the elements that are considered for lost earning capacity include the following:

    • The victim’s work profile, skills, talents, abilities, and experience will all be reviewed and documented.

    • An expert medical witness will determine the extent of the injury and how it will affect the victim’s future work performance in his or her field.

    • Current market values and wage rates will determine how much income the victim would have lost in the future.


    Boston Personal Injury Attorneys

    Because lost earning capacity can be difficult to prove and establish, it’s important that you have an experienced legal team on your side to make sure you get the compensation you need and deserve.

    Call the Law Office of Joel H. Schwartz at 1-800-660-2270 or fill out the form on our website to schedule a free, no-pressure consultation.