If you have been injured by the negligent acts of another person, you have the right to file a personal injury claim in order to recover compensation from the responsible party. Victims may be able to recover compensation for any losses or expenses they have incurred as a result of their injuries. One type of loss that victims may be compensated for is known as “lost earning capacity.” What is this loss? When are personal injury victims compensated for lost earning capacity? Here’s what you should know:
What is Lost Earning Capacity?
Lost earning capacity is a term used to describe a personal injury victim’s diminished ability to earn an income. Although similar, it is not the same as lost wages. The term lost wages refers to actual losses that have already occurred, whereas lost earning capacity refers to the victim’s expected ability to earn an income in the future.
When is Compensation Awarded For Lost Earning Capacity?
Sometimes, an injury can affect a victim’s ability to work. When an injury limits the victim’s ability to earn income in the future, the defendant should compensate the victim for this loss.
For example, let’s say a car accident victim suffers a serious shoulder injury. Because of this injury, the victim can no longer lift boxes that weigh more than 20 lbs. However, the victim works in a warehouse, so being able to lift heavy boxes is one of his job requirements. Since he can no longer perform this work, he finds another job that he is physically capable of doing. This job pays less than his other job, which means he is earning less income as a result of his injuries. Therefore, the defendant should compensate him since his injuries have affected his ability to earn income.
How Much Compensation is Awarded?
Calculating compensation for the victim’s lost earning capacity can be difficult. A number of factors need to be taken into consideration, including how many working years the victim has left and a forecast of the income the victim could have made if he was never injured. It’s important to also factor in bonuses, raises, and promotions the victim could have made when calculating lost earning capacity. Because so many factors are involved in the calculation, the amount of compensation that is awarded to personal injury victims for their lost earning capacity can vary greatly.
If you have been injured, seek legal representation from the personal injury attorneys at Reisch Law Firm immediately. We have years of experience helping victims recover compensation for their medical expenses, lost wages, lost earning capacity, and pain and suffering. Schedule a free consultation today by calling 303-291-0555 or filling out this online form.