If you have been hurt in an accident in California, you might be unable to work for some period of time because of your injuries. Victims who suffer severe or catastrophic injuries might face an even more uncertain employment future. If someone else caused your accident, you are entitled to recover damages from the at-fault party.
“Loss of earnings” and “diminished earning capacity” are two types of compensatory damages that are often available in personal injury claims. While they sound similar, these two types of damages can be very different. Dive into all the details below to learn more.
What Is “Loss of Earnings” in a California Personal Injury Claim?
“Loss of earnings” is one of the types of economic damages that are commonly available after car accidents, slip and fall accidents, and other accidents resulting in injuries. Loss of earnings compensates victims who miss time from work because of their injuries. Victims are entitled to recover the wages they would have earned had the injury not occurred.
How Is a Loss of Earnings Calculated?
Calculating a loss of earnings claim is usually pretty straightforward. First, a victim must determine their average earnings before the accident. This may be calculated as hourly, daily, or another rate that applies to the situation. Then, this rate would be multiplied by the time missed from work to arrive at the total lost earnings resulting from the accident.
For example, imagine you are injured in a car accident and are unable to work for two weeks. You typically make $800 per week, so your claim for loss of earnings would be worth $1,600 for the two weeks that you were unable to work.
How Do You Prove a Loss of Earnings Claim?
Proving a loss of earnings claim requires some evidence of your inability to work as well as your average earnings.
Proof may come in the form of:
- Medical records
- Doctor’s testimony
- Paystubs
- Bank statements
- Official statements from your employer
Individuals who are self-employed can still recover damages for a loss of earnings claim. However, proving those damages may be a little more difficult. Items such as tax returns, invoices, or client contracts may be used to prove the value of those damages.
You should also keep in mind that a loss of earnings claim may apply to all the time you miss from work due to your accident. For example, if you miss work due to a doctor’s appointment for reasonable and necessary medical treatment related to your accident, you should keep track of that time. Keep detailed records of all the time you missed from work because of your injuries, including regular overtime.
What Is Diminished Earning Capacity?
Diminished earning capacity is a little more complicated. It focuses on the money you could have potentially earned throughout your career, were it not for your accident. For instance, if your injury caused you to miss out on a promotion, that could be factored into your diminished earning capacity. These losses are more intangible, and calculating their value can be more difficult.
How Is Diminished Earning Capacity Calculated?
Calculating the value of your diminished earning capacity can sometimes be a challenge.
There are several factors that must be considered when calculating these damages, including:
- The victim’s age and health before the accident
- The victim’s education level and any specialized skills or training
- How many years remain until the victim reaches retirement age
- Industry outlook based on the industry in which the victim worked
- The victim’s life expectancy after the accident
- Testimony from vocational experts about the victim’s employment outlook and capacity
An experienced personal injury lawyer can help put a proper value on your diminished earning capacity claim. Failure to get help could result in the insurance company making you an offer that is much lower than the actual value of your claim.
What Types of Claims Involve Loss of Earnings/Diminished Earning Capacity?
Diminished earning capacity claims may be present in many different types of personal injury claims.
Some of the most common case types involving these damages are:
- Car accidents
- Truck accidents
- Slip and fall accidents
- Medical malpractice
- Construction accidents
- Motorcycle accidents
If you have been hurt in any kind of accident, it is a good idea to get help from an experienced lawyer. Your lawyer can help determine all the damages to which you might be entitled.
How Long Do I Have to File a Diminished Earning Capacity Claim?
In California, victims typically have two years to file a claim for damages after most personal injury accidents. Waiting too long to file your claim can have seriously adverse consequences. It could prevent you from being able to recover any compensation for your injuries.
Keep in mind that the deadline could be shorter or longer than two years in some special cases, so always get help from an experienced lawyer after an accident.
Contact Our California Personal Injury Lawyers for a Free Consultation
After your accident, get help from a team that knows how to get results. At JUSTICENTER Personal Injury Lawyers, we have more than 105 years of experience fighting for the rights of injury victims.
We can help ensure that you get maximum compensation for any time you missed from work and any future wages you might miss out on due to your injuries. Call us today at 818-907-3230 to schedule a free consultation and get started.
