Asking for payment for lost income and future earning ability in a personal injury claim requires clear proof of your work history, possible pay raises, experience, and education. In some cases, your future earning ability may be higher than the income you already lost.
This post explains lost wages and lost earning capacity vs. lost wages in Texas personal injury cases, the difference between them, and how records and expert testimony can help show what damages may be recovered for fair payment.
What Are Lost Wages?
Lost wages refer to the income you lose because your injury prevents you from working. When you are hurt in an accident caused by someone else’s negligence, you should not have to bear the financial burden of missing work while you recover. Under the Texas Civil Practice and Remedies Code, these losses fall under the category of economic damages, which are intended to compensate you for actual financial harm.
Lost wages typically include:
Hourly wages missed: If you are paid by the hour, lost wages include every hour you would have worked but could not because of your injury. This includes overtime pay if you regularly worked overtime and can prove it.
Salaried income: If you are paid a salary, lost wages are calculated by determining the value of the days or weeks you missed. This is usually done by dividing your annual salary by 260 (the average number of workdays in a year) to find your daily rate, then multiplying by the days you missed.
Lost tips and commissions: If your job relies on tips, bonuses, or commissions, you can recover what you would reasonably have earned during your time away. Pay stubs showing prior months’ earnings help establish this average.
Used sick leave or vacation time: If you had to use accrued paid time off to cover your absence, you may still claim those as lost wages. While your paycheck might not show a difference, you lost those benefits you could have used later.
How Lost Wages Differ from Lost Earning Capacity
The key point is to show that you could have earned more money in the future if the at-fault party had not hurt you. Their actions must have limited your future earning ability.
Your lost earning capacity is the money you could have earned in the future if someone else’s carelessness had not hurt you. Lost wages are the pay you miss while you recover from your injury.
You can still ask for future lost wages while your case is being negotiated or heard at trial. But this is different from lost earning capacity, which looks at how much you may be able to earn after you reach maximum medical improvement.
To claim lost earning capacity, you need evidence that shows how much a person with your skills and experience would likely earn if they had not been injured. This amount is compared to what you are now expected to earn after the injury.
A jury may adjust the final amount, but strong evidence can help support your claim for lost wages. Your attorney can also help make sure each type of loss is listed correctly so your claim keeps its full value.
Your lost earning capacity is the money you could have earned in the future if someone else’s carelessness had not hurt you. Lost wages are the pay you miss while you recover from your injury.
How Insurance Companies Challenge Lost Earning Capacity Claims
Insurance negotiations depend on strong evidence that proves your lost earning capacity. This evidence can make your case worth much more. Adjusters watch out for claims that seem like guesses, but with expert testimony and detailed proof, your lawyer can have more power in the talks.
Your lawyer might file a lawsuit before negotiations finish to pressure the insurance company to offer more money quickly. Often, it’s safer for them to settle than to risk losing more money in front of a jury.
When to Hire a Lawyer for Lost Wages and Lost Earning Capacity
If you don’t hire a lawyer right after your injury, you should consider one if the insurance company won’t offer a fair amount, delays their decision, or tries to pressure you into giving up your claim. Because insurance companies are familiar with the claims process, having legal support can help you make the strongest case possible.
A personal injury lawyer can gather medical and financial evidence to support your case, giving you a better chance to get full compensation. At The Krist Law Firm, our attorneys can show you how good legal help can increase what you recover from your injury. Contact us for a free consultation today.
