Loss of Earnings/Diminished Earning Capacity

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If you’ve been injured in an accident, one of the key factors in your personal injury case is determining how the injury has impacted your ability to earn a living. In Washington state, this is known as loss of earnings or diminished earning capacity. These damages aim to compensate you for the income you would have earned had the injury not occurred. 

If you are curious about these damages, read this article to learn what loss of earnings and diminished capacity are all about. You will also learn how they apply to personal injury cases and how a personal injury attorney can help you prove these damages in Washington. 

What Are Loss of Earnings and Diminished Earning Capacity? 

Loss of earnings refers to the wages you lose as a direct result of your injury. This applies to the period you are unable to work while you recover. For instance, the time you spend in the hospital or off work on disability. These wages are typically calculated based on your average earnings before the accident. 

Diminished earning capacity, on the other hand, is a long-term effect. This refers to losing your ability to earn as much income in the future due to your injury. For example, if your injury prevents you from performing the same type of work or reduces your capacity to work as many hours, you may experience diminished earning capacity. 

Both of these concepts are often key components in a personal injury case. This is particularly true when the injury has a significant impact on your employment and future earning potential. 

When Do Loss of Earnings and Diminished Earning Capacity Apply? 

These damages apply when your ability to earn an income is directly impacted by the injuries you sustained in an accident. Loss of earnings will apply to the period directly after the accident. Diminished earning capacity applies if you suffer a permanent injury that limits your future work prospects. 

Examples of when these damages might apply include: 

• Temporary injuries: If your injury causes you to miss work temporarily, such as broken bones or a concussion, you can recover wages for the time you cannot work. 
• Permanent disabilities: If your injury results in long-term or permanent disability, making it impossible for you to return to your previous job or work at the same capacity, you may be entitled to diminished earning capacity. 
• Worsened job prospects: If your injury makes it more difficult for you to find a job in your chosen field or reduces the number of opportunities available to you, diminished earning capacity can apply. 

Accurately documenting how your injuries affect your ability to work is crucial to recovering fair compensation for both lost income and future earning potential.

How a Lawyer Can Help Prove Loss of Earnings and Diminished Earning Capacity

Proving these damages in a personal injury case can be challenging. This is why it’s important to have an experienced attorney on your side. 

A skilled personal injury lawyer can help you prove your loss of earnings and diminished earning capacity by: 

• Gathering documentation: Your lawyer will work with your employer to gather records of your wages and income, including pay stubs, tax returns, and any other documentation that supports your claim for lost wages. This will help us calculate your lost earnings due to the injury. 
• Expert testimony: In cases of diminished earning capacity, your lawyer may consult with vocational experts or economists. These experts can analyze your injury’s long-term effects on your ability to work and earn an income. This expert testimony can help quantify the future losses you’ll face due to the injury. 
• Medical evidence: Your lawyer will also work with your medical providers to establish how the injury has impacted your physical abilities, work capacity, and overall employment prospects. This evidence can be used to support your claim for diminished earning capacity. 
• Workplace impact analysis: If your job requires physical labor or specialized skills, your lawyer will examine how your injury limits your ability to continue working in that field. This analysis can help you build a strong case for diminished earning capacity. 

With the right legal support, you can build a compelling case that fully accounts for the financial impact of your injuries, both now and in the future.  

What Factors Determine How Much Your Case is Worth? 

The value of your loss of earnings and diminished earning capacity claim will depend on several factors, including: 

• The severity of your injury: The more serious the injury, the greater the impact on your ability to work. Permanent injuries that affect your ability to perform basic work tasks will generally result in a higher settlement for diminished earning capacity. 

• Your pre-accident income: The income you earned before the accident will be used to calculate your lost wages. If you were earning a high salary, the value of your loss of earnings claim may be higher. 

• The length of time you missed work: If your injuries caused you to miss work for an extended period, you could recover more for lost wages. 
• Your future earning potential: If your injury has affected your long-term ability to work, you may be entitled to compensation for future lost wages, which requires expert analysis of your occupation and potential career trajectory. 

Accurately evaluating these factors is essential to ensuring you receive fair compensation, which is why working with an experienced personal injury attorney can make all the difference.

How Much Will It Cost to Hire a Personal Injury Lawyer? 

Most personal injury attorneys understand the financial strain that an injury can present to a victim. That’s why most personal injury lawyers work on a contingency fee basis. 

This structure means you don’t have to pay your lawyer any upfront fees or costs. You will only have to pay for your legal representation if your attorney successfully recovers money on your behalf. This will help you to recover compensation without having to worry about the financial pressure of attorney’s fees during your recovery. 

Contact Our Seattle Personal Injury Lawyers for a Free Consultation

If you’ve been injured in an accident and are struggling with lost wages or diminished earning capacity, don’t hesitate to get the legal help you need. Contact Davis Law Group Car Accident & Personal Injury Lawyers today for a free case consultation. Our experienced attorneys will help you understand your rights, the value of your claim, and guide you through the legal process. 

Let us help you secure the compensation you deserve for your injuries and lost income. Contact us today at (206) 727 4000 to schedule your free consultation.