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Calculating “Lost Earning Capacity” 

The Fostel Law Firm May 10, 2023

In Texas, a person injured in a negligent accident may be entitled to seek damages by filing a claim or lawsuit. However, if the victim suffered severe injuries that required hospitalization, extensive medical treatment, or made them unable to return to their previous work, they may be able to recover lost earning capacity—in addition to other potential damages. The purpose of “lost earning capacity” is to compensate the claimant for their inability to earn a potential income due to injuries sustained from the accident. 

At The Fostel Law Firm, I am ready to guide and represent accident victims in their injury claims. As an experienced Texas personal injury attorney, I can investigate every aspect of your situation and determine if you’re eligible to recover lost earning capacity. I will fight vigorously for your best interests, help calculate and prove lost earning capacity, and pursue the maximum available compensation for your injuries and damages.  

The Fostel Law Firm is a nationwide practice and is willing to review cases from any state for no charge. Set up a consultation with me today. 

Loss of Income vs. Lost Earning Capacity

Personal injuries and auto accidents often have immediate effects on victims, as well as long-term ramifications. Depending on the severity of the injury or crash, victims may be hospitalized and unable to work. Loss of income can be described as the wages or unemployment benefits that a person loses due to their work injury or inability to work while they recover. For instance, if the victim sustained a permanent shoulder injury and is unable to return to their previous employment, which involved heavy lifting, they may be entitled to seek lost earning capacity. 

How Is Lost Earning Capacity Calculated?

According to statistics from the National Safety Council, about $167.0 billion was lost due to work injuries in 2021, comprising medical expenses, wage and productivity losses, and administrative expenses. However, unlike lost income, calculating lost earning capacity can be quite complex. The following factors may be considered: 

  • your profession 

  • your location 

  • your education 

  • your age and life expectancy 

  • your work experience 

  • your employment or work history 

  • your transferable job skills 

  • your talents and abilities 

  • market value and trends in your industry 

  • wage rates 

  • promotion history 

  • your ability to move to a different job 

A skilled personal injury attorney can help file your claims and gather substantial facts and evidence to prove lost earning capacity. 

How to Prove Lost Earning Capacity

Proving lost earning capacity isn’t as straightforward as lost income. Your attorney may need to work in tandem with a qualified physician to provide a witness statement or testimony that would demonstrate the magnitude of your injuries and how they would impact your potential work performance and ability. 

Your lawyer can use the present wage rate and market values to show your estimated future earnings. A skilled lawyer can work intelligently to establish lost earning capacity and help you recover the maximum possible damages for your injuries. 

Protect Your Finances and Best Interests

Seeking damages for lost earning capacity in your personal injury claims often involves several complexities. Insurance providers can challenge the loss of earning capacity and try to deny or undervalue your claims. Working with an experienced personal injury attorney is crucial for proper guidance. 

At The Fostel Law Firm, I have devoted my career to offering quality legal services and advocating for the interests of personal injury and accident victims. Using my in-depth legal understanding, I can guide you through the overly-complex claims procedures. Also, I will continue fighting for your rights and help you pursue fair financial compensation to cover medical bills, lost wages, future medical treatments, lost earning capacity, pain and suffering, and other possible damages. 

Contact me at The Fostel Law Firm today to schedule a simple case evaluation with a personal injury lawyer. I can offer you the highly-personalized legal counsel you need in your case. My firm proudly serves clients across Texas, New Mexico, and Louisiana.