Understanding Loss Of Earning Capacity After An Injury

By Howard Eglash, Personal Injury Attorney

A serious injury can do more than give you expensive medical bills. It can change your ability to work, earn a living, and support your family for years to come. So in many cases, an injury doesn’t just impact your current paycheck. It also affects your future income. This is where loss of earning capacity claims come into play.

Understanding how loss of earning capacity is calculated, the role of vocational experts, and what types of compensation may be available can help you protect your financial future after an accident.

What Is Loss Of Earning Capacity?

Loss of earning capacity refers to the reduction in your ability to earn income in the future due to an injury. Unlike lost wages—which cover income you’ve already missed—loss of earning capacity looks ahead, estimating what you would have earned if the injury had not happened.

This can apply whether you are completely unable to work or if you must take a lower-paying job because your injury limits your skills, hours, or responsibilities.

How Future Income Is Calculated

Calculating loss of earning capacity involves looking at multiple factors, including:

• Your age and expected working years left
• Your career path and earning history
• The severity and permanence of your injury
• Whether your injury limits your ability to work in your current field
• The difference between your pre-injury and post-injury earning potential

Economic experts often project your likely career earnings before the injury and compare them to what you can realistically earn afterward. The difference becomes the basis for your claim.

The Role Of Vocational Experts

Vocational experts play a critical role in proving loss of earning capacity. These professionals evaluate:

• Your education, training, and work history
• The physical or cognitive limitations caused by your injury
• Job market conditions in your area
• Available work you could perform given your new limitations

They may also testify in court or provide written reports that help support your claim for future lost income.

Types Of Compensation You May Receive

If your injury claim includes loss of earning capacity, compensation can cover:

• Reduced lifetime earnings – the difference between your expected pre-injury and post-injury income
• Benefits and perks – such as lost retirement contributions, bonuses, or healthcare benefits
• Opportunities lost – like missed promotions or career advancement

Depending on the circumstances, your compensation may be paid as a lump sum or structured settlement.

Why Legal Guidance Matters

Loss of earning capacity claims are complex and often contested by insurance companies. They may argue that your earning potential hasn’t changed or that you could find other work at similar pay. Having an experienced attorney gather evidence, work with experts, and negotiate on your behalf can make a significant difference in the outcome.

Protecting Your Financial Future After An Injury

If your injury has affected your ability to earn a living—now or in the future—it’s important to take action early. Document your limitations, keep detailed medical records, and seek legal guidance before accepting any settlement.

At Bosshard Parke, we help injury victims in La Crosse, Sparta, and across western Wisconsin recover the compensation they deserve for both current and future losses. Contact us today to request a confidential consultation.

Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. For personalized guidance, please consult an attorney at Bosshard Parke.