Lost wages are among the most consequential damages for personal injury victims, particularly when their long-term earning capacity is permanently impaired. Calculating and requesting compensation for these damages is vital so you don’t feel them in the future, and our attorneys can estimate how much you deserve for lost earning capacity.
To calculate your lost earning capacity, we assess the difference between your pre- and post-injury wages. We also factor in your professional trajectory and how that would have increased your income over time. Tax returns and paychecks prove your previous wages, and medical records and expert statements prove you can never work at the same earning level again. Don’t expect the defendant to cover future losses in initial settlement offers, and let us negotiate to ensure these damages are included.
For a free and confidential case evaluation from The Queenan Law Firm, call our Dallas personal injury lawyers at (817) 476-1797.
How Do You Calculate Lost Earning Capacity in a Texas Injury Case?
In addition to recouping lost wages you’ve incurred to date, you can also get compensation for future lost wages. Calculating a victim’s lost earning capacity is a complex process that requires our Austin personal injury lawyers to weigh numerous factors, including the victim’s pre-injury wages and likely professional trajectory.
Plaintiff’s Age When Injured
Your age at the time of injury is an important factor in determining your earning capacity. Younger plaintiffs usually have many decades of working and career-building ahead of them, and they may claim many years’ worth of lost income and earning potential.
Meanwhile, older plaintiffs may have far more work history behind them, and we might have a more accurate idea of their earning capacity and how it has been affected because we have a longer salary history.
Consider, for example, a recent college graduate with decades of work experience and a career ahead of them. We will take into account their young age at the time of the injury, as well as the education or training they received, which may have affected their income over time.
Ability to Work After Recovery
We also consider whether the victim will be able to work in any capacity in the future. Even if you can work with a permanent injury, your income may be significantly lower than it was before. We can request compensation for the difference in your lawsuit, demonstrating how your injuries prevent you from performing a job that pays more.
We may need to assess your new ability to work, if any, over time. You might be able to return to work shortly after the accident, but you may encounter medical complications later that reduce your ability to work even more.
Also, we need to determine whether your inability to work is temporary or permanent. If it is temporary, we must determine whether there is a likely end or whether you cannot work indefinitely.
Pre-Injury Employment and Income
Of course, your pre-injury wages serve as the starting point for our calculations, so please provide us with recent income records, such as tax returns and pay stubs.
Because assessing lost earning capacity involves considering numerous factors, permanently injured victims should rely on our attorneys to calculate future losses, rather than attempting to calculate these damages themselves.
How Do You Support Lost Earning Capacity Calculations in an Injury Case?
Plaintiffs in Texas personal injury lawsuits need evidence to inform and support calculations for lost earning capacity, and our lawyers can organize the records, documentation, and statements required for your case.
Income and Employment Records
Income records prove what your pre-injury wages were. Employment records and other information provided by your employer can confirm the upward professional trajectory you were on, and that you were consistently employed and even promoted.
Medical Records
When arguing that a victim will never be able to return to the same level of employment due to a permanent injury, we need compelling evidence of that injury. MRIs, X-rays, doctors’ notes, diagnostic reports, and other medical records can be used to prove permanent disability.
These records also help prove and recover other damages, such as medical expenses.
Expert Statements
Our attorneys may work with experts to determine the typical income increases and trajectory for someone in your previous field, with your level of experience, and on your unique trajectory. When they testify, experts can discuss how your skills and work history would make you a prime candidate for even higher-paying roles in the future, had you not sustained a life-altering injury.
Medical experts may also discuss the physical or mental limitations resulting from an injury and testify during a lawsuit in Texas, convincing the jury that you cannot work at the same level again, if ever.
Why Should You Calculate Lost Earning Capacity in Your Texas Injury Case?
Suppose your income will be affected for the foreseeable future because of someone else’s negligence. In that case, you should certainly calculate and seek compensation for lost earning capacity, including any other damages you incur because of the defendant.
Permanent Consequences of Injuries
Although some victims can return to work at some level once they reach maximum medical improvement after an accident, this may never be at the same level as before. Calculating lost earning capacity means getting compensation for the difference in your pre- and post-injury income, as well as the potential increases in income you would have received if you continued on your previous professional path.
Career Trajectory
Careers are not static, and many people experience growth and change in their careers over their working lives. Ideally, people seek to earn more income the longer they are employed and the more professional skills they develop.
If you had a once-promising career based on impressive professional credentials, we can argue that you had an upward career trajectory. As such, your damages for lost earning capacity should account for future pay increases you likely would have earned.
Factoring these damages into your claim can significantly increase its value. It also helps ensure you don’t suffer financially in the future, and that your compensation for lost wages is appropriately adjusted to reflect what would have most likely been, were it not for the defendant’s negligence.
Your Ability to Support Yourself
Long after your personal injury case is complete, you will still need to support yourself. The long-term consequences and complications of your injuries may hinder your ability to do so. In order to continue living independently, you must claim damages related to your lost income and earning potential.
How to Get Damages for Lost Earning Capacity from an Injury Settlement
Calculating lost earning capacity is one thing, but recovering these damages for plaintiffs is another thing altogether. Let us represent you during settlement discussions for the case to make sure you don’t sign a settlement that leaves out compensation for lost earning capacity.
Do Not Accept Early Settlement Offers
The defendant most likely won’t include much of your future damages in the first few settlement offers. These initial offers may also fail to provide sufficient compensation for non-economic damages. That doesn’t mean the opposing side will never hike up offers, especially after we present our most compelling evidence.
Do Not Be Afraid to Wait
Although you may need compensation as soon as possible to help with mounting hospital bills, you shouldn’t sign a bad settlement that neglects damages from lost earning capacity. The defendant may risk paying even more if the case goes to trial, so suggesting we go to court may be enough to obtain a better settlement from the defense.
Hire an Attorney to Help You
Instead of agreeing to a low settlement that leaves out all current and future lost wages, let our lawyers continue negotiating or take your case to trial.
An attorney should have the experience and skills to identify your damages, gather evidence to support your claims, and negotiate with the defense to get the best settlement possible. All this would be extremely difficult to do alone while recovering from painful injuries.
FAQs About Lost Earning Capacity in Texas Personal Injury Cases
How Do I Know if My Personal Injuries Have Affected My Earning Capacity?
You should talk to your doctor about the long-term implications of your injuries to determine if your earning capacity is affected. Often, severe injuries with permanent complications make it harder for victims to earn an income like they did before they were hurt.
How Do I Calculate Damages for My Lost Earning Capacity in a Personal Injury Case?
To calculate damages for lost earning capacity, we need details about your work history and the income you were earning before you were hurt. We also need information about your career trajectory and whether you reasonably expected any future promotions or pay increases. If you can still work, but in a lesser capacity, we need to factor in your current earning capacity and determine damages for the difference.
What Factors Influence Damages for Lost Earning Capacity?
Factors that may influence the value of damages for lost earning capacity include, but are not limited to, your former salary, age, education, professional credentials, expected promotions or pay increases, and your current ability to work after being injured.
Can I Include Damages for Lost Earning Capacity in a Settlement?
Yes, but you may have to negotiate with the defendant first. We can include most damages in a settlement as long as we can convince the defendant to agree to pay for those damages. If we have compelling evidence that your ability to earn a living has been significantly reduced, we may seek to have the defendant pay for these damages as part of a settlement.
What Evidence Do I Need to Prove Claims for Lost Earning Capacity?
Evidence to prove claims for lost earning capacity or potential may include your work history, salary history, education and professional credentials, and medical information related to your injuries. We have to show that your injuries prevent you from working in the same capacity, and that you will likely earn less over your lifetime as a result.
Call Us About Your Injury Case in Texas
For help with your case from The Queenan Law Firm, call our Texas personal injury lawyers at (817) 476-1797.