Lost Earning Capacity in CA

If you or somebody you care about is injured due to the actions of another individual, business, or entity, it is very likely that you will be able to recover compensation for your losses. Injury victims are usually entitled to various types of compensation, ranging from coverage of their medical bills and rehabilitation costs to pain and suffering damages. Injury victims are also usually able to recover compensation for their lost earning capacity. Here, we want to discuss what lost earning capacity means, how this differs from lost earnings, and what factors affect lost earning capacity.

What is the Difference Between Lost Earnings and Lost Earning Capacity?

It is not uncommon for a person to not be able to work for some period of time after sustaining an injury caused by somebody else. Any income a person loses while they cannot work is generally referred to as lost earnings.

Lost earning capacity, on the other hand, comes into play if it is believed that an injury will cause a person to earn less money in the future than they would otherwise have earned had they not sustained the injury.

  • Lost earnings refer to the money a person loses only during the period after their injury occurs until they return to work at full capacity.
  • Lost earning capacity refers to the future lost earnings caused by the injury.

Lost earning capacity can occur in a few ways and does not necessarily mean that a person will earn no income in the future.

  • In somehow instances, an injury victim will struggle to work at all in the future due to a disability caused by their injury. In these cases, their lost earning capacity may be significant.
  • In other situations, however, a person may be able to return to work, but only in a limited capacity due to the injury they sustained. For example, if a person can only return to a job that pays less money than their previous job, their lost earning capacity will be the difference between the salary of the two positions.

When are You Eligible for Lost Earning Capacity Compensation?

An injury victim should be eligible to receive compensation for lost earning capacity if it can be proven that their future earnings will be impacted by an injury caused by the careless or negligent actions of another individual, business, or entity.

These cases require extensive investigation, and an attorney will often work with economic and financial experts to help properly calculate the total expected future lost earnings. This will be done by looking at how much longer a person is expected to work during their lifetime, the earnings lost as a result of taking a new position, and whether or not a person will be able to work at all.

Work with an Injury Attorney

If you or somebody you care about has been injured due to the actions of somebody else, it is crucial that you work with a dedicated Santa Ana personal injury lawyer as possible. These cases can become very complicated, but an attorney can use their resources to work with trusted financial and economic experts to ensure you receive full compensation for your lost earnings.