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How to Evaluate Lost Wages and Loss of Earning Capacity

Following a personal injury accident or a workplace accident, a lawyer can help you assess the value of the wages you have lost and the income you will likely lose in the future due to your injuries.

Summary

  • Injuries from workplace accidents, slip and falls, and motor vehicle accidents can prevent individuals from returning to work, costing them income.
  • In a personal injury claim, accident victims can recover compensation for lost wages, as well as sick days and reduced earning potential.
  • Minnesota personal injury attorneys offer valuable services to accident victims, including evidence gathering and strategic negotiation.

If you’ve suffered a severe injury, such as a spinal cord injury, due to an accident, then there’s a very high likelihood that you can’t work. As a result, you’re probably losing a large portion of your salary. Whether the cause was a truck accident or anything else, you want to know how you’ll be able to recoup those lost wages.

Your first step should be to hire an attorney who can build the strongest case possible on your behalf. That will be your best chance of not only recovering lost wages, but other losses (known as “damages” in legal terms) as well.

Sand Law LLC is ready to provide the help you need to obtain the compensation you deserve. You shouldn’t have to suffer lost wages because of someone else’s negligence. We’ll do everything we can to hold those responsible for your losses accountable. Contact us online or call 651-291-7263 for a free case review.

How to Evaluate Lost Wages and Loss of Earning Capacity - Sand Law LLC Minneapolis Saint Paul Minnesota Personal Injury Attorneys

Here’s some information how lost wages are typically calculated, and how a skilled attorney can help you recover financially while you concentrate on recovering physically.

What’s Covered Under Loss of Earning Capacity?

Before we get too deep into lost wages, it’s important to make a distinction between lost wages and lost earning capacity, also referred to as lost earning potential.

You might have a severe brain injury that simply won’t allow you to perform at as high a level at your job as normal. Even a so-called “mild” brain injury can lead to years of impairment. This could mean that you won’t be able to achieve promotions in the future, or you might lose other opportunities, such as a job with another company that would pay more.

This is what is meant by lost earning capacity. You may be able to obtain compensation that will cover these losses, but you’ll need the help of an experienced attorney. This is a very complex type of damages to prove, but an attorney can help uncover the evidence to help you do just that.

What’s Covered Under Lost Wages?

Let’s say you were in your car and hit by a truck. This is an incredibly dangerous type of accident. So you may have permanent injuries that will affect your ability to work. To build a strong truck accident case, your attorney will need to factor in your lost wages.

Lost wages include far more than the amount of money on your paycheck. There are many others your attorney will take into account when determining how much compensation to demand from the negligent party’s insurance company. Here are a few examples.

  • Hourly pay. This is the easiest type of calculation involving lost wages. You simply multiply the amount you make each hour by the number of hours you work each day. Then, you multiply the number of days you’ve missed from work. If you make $30 an hour and work eight hours a day, that comes out to $240. If you’ve missed 20 days of work, then you’ll have $4,800 in lost wages.
  • Sick days. Remember that your attorney will factor in all of your lost wages. This includes not only sick days, but also vacation days as well. You deserve compensation for these as well.
  • Perks. A lot of jobs come with very attractive perks, such as use of a company car, a smartphone, or a gymnasium membership. These can also be included in your lost wages.

How is Loss of Earning Capacity Calculated?

Going back to lost earning capacity, it’s not as easy to calculate as the examples of lost wages mentioned above. There are a variety of factors that go into determining the value of lost earning capacity. These include the following:

  • The projected trajectory of your career.
  • Your skills, work history and education.
  • The advancement opportunities in your line of work.
  • Any credentials and certifications you’ve earned.
  • Your past record of raises and promotions.

Every case is unique. One person’s earning capacity will be significantly different from that of another person – even when two people are in the same profession. That’s another reason why you’ll need an attorney who knows how to make these kinds of calculations.

How are Lost Wages Proven?

You’ll not only need to provide evidence you weren’t at fault for the accident that caused you to lose wages, you’ll have to prove what you made as well. Say you suffered a slip and fall accident in a grocery store. If you can gather strong evidence to prove the store’s negligence led to the accident, then you’ll have a great chance to obtain compensation.

When it comes to proving your lost wages, examples of proof include W-2 forms from the previous tax year, paystubs, and a wage verification from your employer. Your attorney can help if you believe you’ll have a difficult time coming up with that proof.

What if You’re Self-Employed?

It could be a little more complicated to provide evidence of your wages if you’re self-employed. Some of the different types of documentation you’ll need will be your tax returns, evidence of money you’ve received for the services you provide, and your bank records. For privacy reasons, you should always black out any documents that include bank account or Social Security Numbers.

Next Steps: Should You File for Disability or Unemployment?

You might have been injured at work, in a construction accident or some other event. More than likely, you’re wondering whether you should file an unemployment or disability claim.

The answer is easy when it comes to unemployment. You can’t file. In order to do so, you’d have to show you’re available to work and you’re actively looking for a job. If you’re severely hurt, you won’t be able to do either.

There is, however, a chance that you could file a disability claim. This is another area where an attorney can give you the advice you need to make the right choice.

Why You Should Work With a Minnesota Personal Injury Attorney

As you can see, proving that you deserve compensation for lost wages can be a fairly complex undertaking. You’ll more than likely be dealing with an insurance company that will do whatever it can to reduce the amount of money you receive – or deny your claim outright.

But when you hire a qualified attorney, you won’t have to deal with any of those hassles.

Other benefits of working with a personal injury lawyer include, but are not limited to:

Legal Expertise in Personal Injury Claims

Experienced Minnesota personal injury lawyers possess in-depth knowledge of the processes involved in personal injury law, particularly when it comes to claiming lost earning capacity.

Their understanding of relevant statutes and precedents allows them to build strong, compelling cases tailored to your specific situation. They can quickly identify legal nuances that may be overlooked by less experienced or self-represented parties, ensuring that your claim is well-founded and effectively presented.

Strong Negotiation Skills

Seasoned personal injury attorneys at Sand Law are adept negotiators who can skillfully engage with insurance companies and opposing counsel. Their expertise allows them to advocate for your best interests and push for a settlement that truly reflects the extent of your losses.

By leveraging their negotiation skills, they can prevent low-ball offers and ensure that the compensation you receive adequately covers your financial setbacks, including lost earning potential.

In-depth Understanding of Local Laws

Minnesota’s legal landscape can be complex and varies significantly from other states. An experienced personal injury lawyer in Minnesota is well-versed in these local laws and regulations, providing you with a distinct advantage.

Their familiarity with state-specific legal procedures and requirements ensures that your case is handled efficiently and in compliance with all relevant legal standards, thus improving the likelihood of a favorable outcome.

Ability to Gather and Present Evidence

Proving lost earning capacity requires substantial evidence, which experienced lawyers are skilled at gathering and presenting. A good lawyer knows how to collect crucial documents, such as employment records, expert witness testimonies, and financial statements, to support your claim.

Their ability to organize this evidence into a coherent and persuasive argument is key to demonstrating the impact of your injury on your earning potential, thus strengthening your case.

Personalized Attention and Customized Strategies

A seasoned Minnesota personal injury lawyer will offer personalized attention to your case, tailoring their strategies to meet your unique needs and circumstances. They take the time to understand your situation, providing you with individualized legal guidance and support throughout the claims process.

This personalized approach ensures that every aspect of your claim is addressed, and that you feel supported and informed every step of the way.

Maximizing Compensation Potential

One of the primary benefits of hiring an experienced personal injury attorney is their ability to maximize the compensation you receive. Their comprehensive understanding of the types of damages available, including lost earning capacity, allows them to pursue all possible avenues for compensation.

By thoroughly evaluating your case and advocating vigorously on your behalf, they ensure that you receive a settlement or award that fully reflects the economic impact of your injuries.

Book Your Free Case Evaluation Today With the Personal Injury Lawyers of Sand Law LLC

If you or your loved one has lost substantial income or earning capacity due to injuries sustained in an accident caused by someone else’s negligence, Sand Law LLC MN personal injury lawyers are here to offer legal support. Talk to Sand Law LLC to learn more about how we may be able to help. Use our online form or call 651-291-7263 for a free consultation.


Frequently Asked Questions

What is the difference between lost wages and loss of earning capacity?

Lost wages refer to the income you miss out on due to an injury, while loss of earning capacity pertains to the reduced ability to earn in the future because of permanent or long-term impairments.

How can I prove lost wages and loss of earning capacity?

To prove these damages, you’ll need documentation such as pay stubs, employment records, and expert testimony to establish your previous earnings and projected income losses.

What role does medical evidence play in these claims?

Medical evidence is crucial in demonstrating the extent and impact of your injuries. Medical documentation can support claims for both immediate wage losses and long-term loss of earning capacity.

How does partial disability affect these claims?

Partial disability may limit your job options, potentially reducing your earning capacity. Documenting these restrictions is vital for accurate claims.

What is the time frame for filing a claim?

In Minnesota, the statute of limitations is two years. Generally, you should file your claim as soon as possible to avoid missing deadlines.