How to Prove Lost Earning Capacity After an Accident
While lost wages cover income you miss recovering from a personal injury, lost earning capacity refers to your reduced ability to earn income in the future due to your injury. Proving lost earning capacity can be complex, but with the right documentation and expert support, it can become a critical part of your Paducah injury claim.
What Is Lost Earning Capacity?
Lost earning capacity—also called diminished earning potential—refers to the difference between what you were capable of earning before the accident and what you can reasonably earn after it, based on your injuries. This loss may be temporary or permanent, depending on your medical prognosis and the demands of your profession. For example:
- A construction worker who suffers a serious back injury may no longer be able to perform physically demanding tasks.
- A pianist with a hand injury may lose the ability to perform or teach at the same level.
- An office worker with a traumatic brain injury may struggle with memory or communication, limiting future job opportunities.
Even if you can still work in some capacity, your overall income may be reduced.
Key Evidence Used to Prove Lost Earning Capacity
Courts and insurance companies require solid evidence to support claims for lost earning capacity. Here are the most important types of documentation:
Medical Records and Expert Testimony
A physician or medical expert must explain the nature of your injury, your prognosis, and any long-term limitations. This establishes the connection between your injuries and your reduced work ability.
Vocational Expert Analysis
A vocational expert evaluates how your injury affects your ability to perform your previous job or obtain similar work. They consider factors like physical limitations, required job skills, and retraining potential.
Employment History and Income Records
Pay stubs, W-2s, tax returns, and employment contracts help demonstrate your earning history. This creates a baseline for estimating what your future earnings would have been without the injury.
Economic Expert Testimony
An economist may be brought in to project your lost future income, factoring in inflation, raises, promotions, retirement age, and fringe benefits (like health insurance or retirement contributions).
Factors That Influence Lost Earning Capacity
Each case is unique but the following factors can affect how much compensation you may receive for lost earning capacity:
- Age and life expectancy
- Education and skills
- Career path and opportunities for advancement
- Severity and permanence of the injury
- Labor market conditions
The more clearly you can demonstrate the impact of your injuries on your future income, the stronger your case will be.
Types of Injuries That Allow You to Claim Lost Earning Capacity
Not every injury results in long-term income loss, but these serious or disabling conditions can significantly impact your ability to work:
- Spinal cord injuries that result in paralysis, chronic pain, or limited mobility
- Traumatic brain injuries (TBIs) that affect memory, concentration, or decision-making
- Orthopedic injuries, such as complex fractures, joint damage, or permanent loss of range of motion
- Amputations or loss of limb function
- Severe nerve damage that limits movement or sensation
- Vision or hearing loss that affects job performance
- Psychological injuries, including PTSD or anxiety, that interfere with work responsibilities
Even if the injury does not prevent you from working entirely, a documented reduction in your ability to perform your previous job—or to advance in your career—can support a claim for lost future earnings. Seek legal support by contacting Bryant Law Center to file a personal injury claim today.