If you’ve been injured in an accident and your ability to work and earn money has been impacted, it is crucial that you understand how you can prove your lost earning capacity to a court. Read on and work with a knowledgeable Middlesex County personal injury attorney today.
What Does “Lost Earning Capacity” Mean?
You may have heard of lost wages, which refer to income that you miss out on because of your injury. This is money that you do not have the opportunity to make because you need to take time off from work to recover. Lost wages include your salary, tips, commissions, bonuses, and even time off that you used during the recovery period. But what is lost earning capacity?
Lost earning capacity is similar to lost wages, but refers to the future income that you will lose out on because your injury limits your ability to work at the same capacity as you once did. For example, if you have to work fewer hours, cannot work at the same level, or cannot return to the same role or industry, all of these losses fall under lost earning capacity.
How Can I Prove My Lost Earning Capacity After an Injury in NJ?
New Jersey courts allow plaintiffs to recover compensation for future economic damages, including lost earning capacity. However, because this loss has not yet occurred and is impossible to accurately predict, you must provide ample evidence establishing the way that your injury has impacted your ability to work and the wages that you could have earned if the accident never occured.
Strong evidence that can help bolster your case includes the following.
- Medical evidence: Documentation showing the severity, extent, and permanence of your injury can help establish how significantly you were injured and how you will continue to be affected in the future
- Employment records: Pay stubs, tax returns, performance evaluations, and more can demonstrate the income you earned before the injury and your career trajectory
- Expert testimony: Vocational experts can assess your work history, job skills, and physical or mental limitations post-injury to evaluate the jobs you can no longer do, and medical professionals can speak to the limitations of your injury
- Economic analysis: Economists can help calculate lost future earnings more accurately by projecting your lifetime income losses based on your age, career prospects, and industry trends
As the plaintiff, you bear the burden of proving that your earning potential has been substantially reduced and that it is a direct result of the accident and injury.
How is Lost Earning Capacity Calculated?
Insurance providers, courts, and attorneys can all estimate lost earning capacity by determining the difference between your pre-injury earning potential and your realistic post-injury earning capacity. After evaluating your employment history, skills, education, and projected career growth, you must determine the impact of the injury.
This includes the extent and permanence of the injury, the functional limitations it has on your ability to perform essential job tasks, and the overall impact on your ability to earn an income. Personal injury law can be complex, so it is crucial that you work with a skilled attorney to protect your rights during your case.
