When you’re injured in an accident, your first thoughts are usually about your health and getting medical help. But soon after, reality sets in, and you may not be able to go back to work, or at least not in the same way you did before. This can lead to serious financial problems for you and your family.
In personal injury law, two important terms come up when talking about lost income: loss of earnings and diminished earning capacity. These are legal ways to help you recover the money you’ve lost or will lose in the future due to your injury. This article explains what these terms mean, how they’re different, and how they might apply to your personal injury case in Seattle. Contact Darrell Cochran Personal Injury at (253) 948-0250 for a free consultation today.
What Is Loss of Earnings?
Loss of earnings refers to the money you could not earn because of your injury. This includes the income you missed while recovering or receiving treatment. If you had to take days, weeks, or even months off from work due to your injury, you may be able to recover those lost wages.
Loss of earnings is usually calculated by looking at your regular paycheck and figuring out how much you would have made if the injury had never happened.
This can include:
- Hourly wages or salary
- Overtime
- Tips or bonuses (if common in your job)
- Sick leave or vacation days used during recovery
It is often easier to prove loss of earnings if you have pay stubs, tax records, or employer statements. These documents show how much income you usually make and how much you missed because of the accident. At the end of the day, loss of earnings focuses on the income you’ve already missed due to being injured.
What is Diminished Earning Capacity?
Diminished earning capacity is different from lost earnings. This term refers to the future income you may no longer be able to earn due to your injury. If your injury is serious enough that it affects your ability to do your job long-term or limits your career options, then you may be able to claim diminished earning capacity.
For example, let’s say you were a construction worker before the accident, but now you have a permanent back injury. Even after healing, you may be unable to return to heavy labor. If you now have to take a lower-paying job or work fewer hours, that’s a loss of future earning potential.
Even if you can still work in some way, the law recognizes that your injury may limit your chances to grow in your career, earn raises, or receive promotions.
Diminished earning capacity is usually harder to calculate than lost earnings because it involves estimating what your future could have looked like if you had not been injured. Often, experts like economists or job consultants are used to make these estimates.
How Are These Claims Proven?
Proving a loss of earnings is usually straightforward if you can provide documentation of your normal income and the time you missed from work. Medical records, employer statements, and past paychecks are key. Proving diminished earning capacity is more complex.
In most cases, you’ll need expert testimony from:
- Medical professionals who explain your physical or mental limitations
- Economists who estimate lost income over time
- Vocational experts who explain how your injury affects your job skills
In both cases, your personal injury attorney will gather evidence and build a strong case to support your claim.
It’s also important to act quickly. Under Washington State law, a three-year statute of limitations exists to file a personal injury claim, including claims for lost earnings or diminished capacity. Waiting too long could result in losing your right to recover damages.
Don’t Wait to Get the Help You Deserve
Injuries that affect your ability to earn a living are serious. If someone else’s actions caused your injury, you should not be the one paying the price. Loss of earnings and diminished earning capacity are legal tools to help make things right.
These damages are not automatic; you have to prove them. The sooner you speak to a personal injury lawyer in Seattle, the sooner they can begin gathering the evidence needed to support your case. Insurance companies often try to minimize these damages, so having the right legal help is key.
Contact Our Seattle Personal Injury Attorneys for a Free Consultation
Loss of earnings and diminished earning capacity are more than just legal terms. They represent your livelihood and future. By understanding how these damages work and getting the right help, you can take steps toward healing physically and financially.
If you have suffered a serious injury, don’t wait to speak with a trusted Seattle personal injury attorney. You deserve the chance to rebuild your life with the financial support you need. Call Darrell Cochran Personal Injury Lawyer to schedule a free consultation.