Following a personal injury, the inability to return to work can add financial stress to an already difficult situation. When you work with a lawyer and file an injury claim, you can be compensated for lost wages and reduced earning capacity. Proving that your injury has caused a disability and establishing your current wages are the critical first steps you’ll need to take. An injury lawyer can explain how lost earning capacity is calculated in California.

Common Causes of Personal Injuries and Disabilities

There are many potential causes of serious or catastrophic personal injuries in California, although some are more common than others. Given California’s heavy traffic, car collisions can be devastating. In Orange County alone, there were 17,809 people injured or killed in roadside crashes along Pacific Coast Highway, Jamboree Road, Harbor Boulevard, or elsewhere in the area.

An assault can also lead to bodily harm that leaves injured victims unable to return to work or reduces their job options. In Los Angeles County, which sees a violent crime rate of 5.117 per 1,000 residents, the consequences of an assault can be devastating. Falls and other accidents can cause spinal cord injuries that limit mobility. The U.S. sees 18,000 new cases of spinal cord injuries every year, which is a reminder of how common this serious type of injury can be.

Following a serious injury, individuals may be taken to nearby hospitals such as Cedars-Sinai Medical Center, Ronald Reagan UCLA Medical Center, or Hoag Hospital Newport Beach, or to other facilities for urgent medical attention. Not everyone fully recovers from their injury, and many patients are forced to contend with limited mobility and other setbacks.

Can I Be Compensated for Lost Earning Capacity?

If you were injured due to someone’s negligence or wrongful acts, you have the right to pursue compensation through an injury claim. When an injury leaves you unable to perform your previous line of work, you may be faced with serious and long-lasting financial hardships.

California’s personal injury laws account for financial losses you may experience through lost earning capacity. A successful injury claim can provide compensation for the income you will lose over a set period of time due to your lost earning capacity.

How Lost Earning Capacity Is Calculated

Lost earning capacity reflects how an injury affects a person’s ability to earn income in the future. Calculating these losses often involves reviewing employment history, education, job skills, and expected career progression.

Financial records such as tax returns, pay statements, and employment contracts can help establish prior earnings. Medical evaluations may explain whether physical or cognitive limitations will restrict future work.

Vocational consultants may also assess what types of jobs the injured person can reasonably perform after recovery. Economists sometimes project how these limitations could affect lifetime earnings, accounting for raises, promotions, and other opportunities that may have been available before the injury.

Why You Should Hire a Personal Injury Lawyer

If your personal injury left you unable to return to your previous line of work, your top priority should be to hire a personal injury lawyer. California’s personal injury laws provide a pathway for pursuing compensation, but your personal injury claim must be backed by compelling evidence.

When you partner with a knowledgeable California personal injury attorney, you gain the support of an unwavering advocate who can calculate the value of your financial losses before aggressively pursuing what you are owed. Injury lawyers are skilled negotiators who can also pursue litigation when needed to protect your right to fair compensation.

Client Testimonials

The attorneys at Easton & Easton have earned an average rating of 4.9 stars from our former clients. Here are actual testimonials by our former clients.

After my own car accident, I experienced firsthand the care, dedication, and professionalism my husband, Aaron Sinfield, brings to every case at Easton & Easton. From the very beginning, he was attentive and knowledgeable, guiding me through each step with clarity and confidence.

Linda S. 

I appreciate the services of Easton & Easton because they were timely in returning my calls and emails, they were truthful, and they followed through with each and every task. I was able to trust my case in their expert hands.

Lisa L.

As a past client of this firm, I can attest that they are AMAZING!! Travis Easton was able to settle with the other driver and then get me additional money through my own Underinsured Motorist Coverage. I am so grateful for the work they did for me!

*Client testimonials reflect individual experiences and do not guarantee a similar outcome.

FAQs

How Is Loss of Earning Capacity Calculated in California?

Loss of earning capacity is calculated by examining how an injury affects a person’s ability to earn future income. The analysis process may involve reviewing employment history while considering the worker’s education and predicted career trajectory. A consultant may help the insurance carrier compare the injured person’s earnings before the incident to calculate the loss of income after the incident.

How Are Lost Wages Calculated in a California Injury Claim?

Lost wages are typically calculated by determining how much income a person missed because of their injury. Insurance companies and the courts often review pay stubs, tax returns, and employer records to verify earnings prior to the incident. This calculation may include lost benefits in addition to missed earnings. Legal representation can play a crucial role in protecting your right to fair compensation following an injury that leads to missed time from work.

What Is the Difference Between Lost Wages and Lost Earning Capacity?

Lost wages are a type of economic damage that accounts for lost income and loss of benefits that directly resulted from a personal injury. Lost earning capacity reflects the reduced earning capacity someone experiences after a serious injury. Lost wages can compensate someone for the finite period during which they are recovering. An injury that results in a disability can cause long-term financial losses that can be addressed through a fair settlement.

What Evidence Is Used to Prove Loss of Future Earnings?

To prove loss of future earning capacity, you can work with an attorney to establish your most recent salary. Then, your attorney can assess how long it will take for you to recover. In cases involving disability, the loss of future earnings can be significant. Insurance companies often take steps to minimize what you are owed, which is why securing legal representation should be your top priority.

Work With a Proven Settlement Negotiation Firm Serving California

The outcome of your settlement negotiations can determine whether you have the resources you need to recover and move forward. When you work with Easton & Easton, you gain the steady support of award-winning attorneys who bring a proven track record of securing high-value settlements. To date, we have helped our clients recover over $2 billion in compensation through strategic negotiations and litigation.

We can take the time to learn about the financial losses you suffered following an injury, including the long-term loss due to reduced earning capacity. You should not have to deal with financial stress while you recover. Trust Easton & Easton to pursue a large settlement that fully reflects the hardships and setbacks you’ve experienced and continue to face. Contact our office today to schedule your consultation.