Proving Lost Earning Capacity in Texas: A Guide
In the aftermath of a serious injury, it’s only natural that victims will focus on the immediate consequences. Things like medical bills and missed paychecks can be financially devastating to someone who is also dealing with the mental and physical toll of recovery. If the injury was caused by the direct action or negligence of another person or organization, seeking compensation through the courts is an appropriate response.
However, before filing a claim it is critical to take a moment and consider the whole story: not just the immediate consequences, but the long term effects of the injury as well. If an injury limits your ability to work at your former capacity, or to return to work at all, you may be owed compensation for what is called lost earning capacity in Texas law. That is to say, compensation for the earnings you are no longer able to realize in the future as a result of your injury.
Proving lost earning capacity is complex. Your first step should be to consult with a Texas personal injury lawyer and lost earning capacity claims. The attorneys at Reynolds & Reynolds Law Firm in Frisco, TX, have helped clients get closure, and get what they are owed, for decades. Schedule a consultation if you believe you have a personal injury claim.
Lost Wages vs. Lost Earning Capacity. What Is the Difference?
First things first: lost wages and lost earning capacity are different things in Texas law, so it’s important to not use the two terms interchangeably.
Lost wages refer to income you actually lose, because your injury prevents you from working.
For example, if you earn $1,000 per week and your injuries prevent you from working for eight weeks, you may have $8,000 in lost wages. Missed bonuses and the use of sick leave or Paid Time Off (PTO) may also be figured into the calculation. In short, though, lost wages refers to a real and finite number. It is the paycheck you didn’t get, because you couldn’t work while in the hospital or during recovery.
Lost earning capacity refers to the reduction in your ability to earn future income because of an injury.
For example, a construction worker who suffers a permanent back injury may no longer be able to perform physically demanding work. Even if the worker returns to a different job, the injury may have reduced their overall ability to earn.
And that’s just one example. Lost earning capacity can take many forms:
- The injured person is no longer able to perform their job at all. Like the construction worker above, if they cannot return to their old job, it’s likely a new position will have reduced earning capacity.
- The injured person’s ability to work is more limited. Even if they return to the job, there might be parts of it they can no longer do, or they require more frequent accommodation or limited hours. Down the road, this can mean less opportunities for promotion and vulnerability during staffing cuts.
- The injured person loses out on opportunities for career growth. Timing is everything in some career paths, and if a person misses out on an important event, an opportunity to earn a certification or award, or other time-sensitive career boost because they were injured, in the hospital, or not physically able to attend, that can have a lifetime impact on earnings.
How to Prove Lost Earning Capacity
As lost earning capacity deals with a theoretical future, or what might have happened should the injury not occurred, proving lost earning capacity in Texas is complicated. It’s the kind of case you’ll want to bring to a lawyer who specializes in personal injury and lost earning capacity.
The goal of your claim is to show how your injury has affected your ability to earn compared with your earning capacity before the injury. How has your ability to work changed, and what are your future prospects in that role, both before and now?
Evidence you bring will include:
- Your employment and salary history
- Education, training, and work experience
- Medical records and permanent work restrictions
- Your ability to perform your previous job
- Changes in your career or employment opportunities
- Evidence of your expected future earnings
Medical evidence is particularly important when an injury causes permanent limitations. Depending on the case, vocational or economic experts may also help establish the impact of those limitations on future earning potential.
Texas courts recognize claims for both past and future impairment of earning capacity. The evidence must provide a reasonable basis for measuring the financial loss.
A Quick Aside about Vocational Testimony
A personal challenge that many who want to claim lost earning capacity will face is recognizing and acknowledging the difference between no longer being able to earn because you can’t, and simply not wanting to change. And that’s understandable. If you love your job, are happy with your career track, and had no plans to change careers or positions, having the situation forced upon you by an injury caused by another feels unfair. However, the courts are concerned with the facts of the case. If vocational and economic experts can testify that you have the skills, certifications, training, and job opportunities to return to your former earning potential, even if not through your previous job, the court will take that into consideration.
This again is something your attorney can help work through with you. Are you really not able to earn, or do you just not want to change jobs?
How to Get Started
If you have suffered a personal injury that you believe has been caused by another’s direct action or negligence and has limited your ability to earn for the remainder of your working life, the first step is to consult with a qualified attorney. They will be able to discuss the validity of your claim and begin the process of identifying and collecting all the evidence you will need to bring a case forward. The requirements are specific and vast, so working with the right team is critical.
Reynolds & Reynolds Law Firm in Frisco, TX are experts in lost earning capacity cases resulting from injuries in both public and the workplace. We serve a wide clientele throughout the Dallas-Fort Worth Metroplex and all of North Texas, all seeking to make things right after suffering a debilitating injury.
To get started, Schedule a Consultation or call us at (214) 891-6606.
This article is for general informational purposes only and is not legal advice. Every case is different.