How Do I Prove Lost Earning Capacity After an Accident in CA?

When you are injured as a result of another party’s negligent actions, whether you were struck by a distracted driver or suffered a slip and fall in a grocery store, the injuries you sustain can impact all areas of your life. However, one aspect that many do not expect is the financial burden your injuries can cause, especially if they impact your ability to continue working. As such, it is necessary to understand how to fight for lost earning capacity in your case. Read on and reach out to our Irvine personal injury lawyers to learn more about whether you may qualify for compensation for lost earning capacity after an accident.

What Is Lost Earning Capacity?

In personal injury cases, there are a number of damages you can seek for the financial losses you have endured as a result of another person’s negligent actions. These are referred to as economic damages, as they reflect the actual, calculable, monetary losses. One of the more complex of these damages is lost earning capacity.

When you are injured, you may be unable to work for a period of time while you heal, and you can seek compensation for your lost wages. However, if you are unable to return to work in your previous capacity, have a reduced work life expectancy, or are unable to return to work at all (whether temporarily or permanently), you can also file a claim for the wages you would have received if you had not been injured. This is known as your lost earning capacity.

Under California law, lost earning capacity is the calculated difference between what a plaintiff would have earned had they not been injured and what they will earn. For example, if you can return to work but in a reduced capacity, you can seek compensation for the difference in wages.

What Is Necessary to Prove This Loss?

Unlike lost wages, proving lost earning capacity can be difficult, as you are seeking compensation for a loss that has not happened. As such, it is imperative to understand the steps you can take to help prove the value of this loss.

First and foremost, it is necessary to understand the factors that are taken into consideration to help determine the value of the lost earning capacity. This includes how long the injuries are expected to last, how many years before the plaintiff retires, previous earned wages, whether or not the plaintiff was being considered for a promotion or bonus, the plaintiff’s performance reviews, and any other factors the court deems relevant.

Proving lost earning capacity can be difficult, but there are several individuals who can aid in the fight for the compensation you deserve. For example, your employer can testify and provide communications regarding your performance and potential promotions or bonuses that you were being considered for, while your healthcare provider can explain the extent of your injuries.

In addition, you may benefit from the testimony of expert witnesses, like a vocational expert who can explain how your injuries have prevented you from returning to work in your prior capacity, and an expert economist who can help calculate your projected future earnings.

If you have sustained an injury that leaves you unable to return to work in your prior capacity, it is critical to understand that you are not alone during these difficult times. The team at California Personal Injury Law Firm, APC, will examine your case to determine the best course of action for your unique needs. When you need assistance, our team is here. Contact us today to learn how we may be able to assist you.