What is loss of earning capacity? In a personal injury case, loss of earning capacity is a reduction in someone’s potential future wages that occurs because of an impairment from an accident-related injury. If your injury has impacted your ability to earn in the future at the same rate you would have before the accident, you have the right to seek compensation from the person who injured you.
No matter how you were injured – a motor vehicle accident, a construction site accident, a medical malpractice case, or a slip and fall incident – you can file a personal injury claim to recover damages.
In a New Jersey personal injury case, you can seek compensation for your medical expenses, loss of income, pain and suffering, and other losses. Lost income includes wages you’ve lost due to being out of work, as well as lost future income.
Lost Earnings
If you get hurt in an accident, you may find that you can’t work for a time while you recover from your injuries. Of course, most people can’t afford to just absorb the loss if they aren’t able to work for weeks, months, or even years. That’s why you’re entitled to seek compensation for your lost wages with a personal injury claim. Under New Jersey law, an injury victim can seek compensation for any earnings lost due to the defendant’s negligence.
The jury in a personal injury case will decide:
- Whether the plaintiff lost their ability to work due to their injuries, resulting in lost income
- The length of time in which the plaintiff couldn’t work
- The plaintiff’s income before the accident
- The plaintiff’s income after returning to work
- Whether their ability to work was affected on an ongoing basis
- Whether their income suffered as a result
- Whether the plaintiff could have earned money in some other way
- Whether the plaintiff made a reasonable effort to earn money in some way
- The total amount of lost earnings
Future Lost Earnings
In personal injury cases, damages can include your lost earnings and future loss of income. New Jersey courts will consider loss of future earnings when:
- The plaintiff has not been able to go back to work
- The plaintiff can go back to work but not to the same job
- The plaintiff is only able to work reduced hours
The court will consider the following factors:
- The extent and severity of the injury
- The plaintiff’s age
- The plaintiff’s state of health
- How long the loss of earning power will last
- How much the plaintiff is still able to earn
Lost Earning Capacity
If you’ve suffered a loss of earning potential due to an injury, you can seek compensation for your lost wages and loss of potential income. In a lost earning capacity calculation, the court will consider:
- The probability that you would have received a raise for productivity if you had not been injured
- The probability that you would have been promoted if you had not been injured
- Your life expectancy
- Your working life expectancy, or how long you would have been able to continue working if you had not been injured
Loss of earning capacity refers to the loss in your ability to earn money in the future due to the injuries you suffered. This amount is, to some extent, a matter of opinion because it is based on how long you are likely to live and how likely you are to receive a raise or a promotion.
Your personal injury lawyer will review your work history and make the best possible case to the jury that you would probably have received raises and promotions if not for your injury.
Your lawyer may also call expert witnesses to the stand to testify about the extent of your injuries, how they have affected your income and earning capacity, and the total value of your losses.
How Can a New Jersey Personal Injury Attorney Help My Claim?
Before you file a personal injury lawsuit, the first step is to file a claim with the insurance company of the person who injured you. You can file a personal injury claim without the help of a lawyer, but you may risk receiving less compensation.
The insurance company is in business to make money, and they don’t want to pay any more money than necessary when they settle an insurance claim. Their first goal will always be to see if there is a way to deny liability and avoid paying. If they don’t think they can get away with that, they may ask you to settle for a lowball offer that doesn’t cover your losses. It’s tough to get an insurance company to take you seriously without the help of a lawyer.
A personal injury attorney can help you by:
- Investigating the accident
- Interviewing eyewitnesses
- Reviewing your medical records
- Reviewing the police report
- Consulting independent experts
- Calculating the full value of your claim
- Demanding compensation from the insurance company
- Negotiating for maximum compensation
- Filing a lawsuit if the insurance company won’t settle
- Arguing your case in court
Not every personal injury case ends up in court. Most often, the insurance company settles to avoid a lawsuit. An experienced New Jersey personal injury lawyer can give you the help you need to pursue the compensation you deserve.
Call a New Jersey Personal Injury Lawyer Today
If you’ve been injured in an accident in New Jersey, you face a lot of challenges, including expensive medical bills, lost time at work, pain and suffering from your injuries, and diminished earning capacity. Don’t let the person who hurt you get away with their negligence. Hold them accountable with the help of an experienced New Jersey personal injury lawyer.
We have recovered over $525 million for injured people in the Garden State. If you’ve lost income due to someone else’s negligence, you need our law firm to fight aggressively to recover compensation for your loss. We can help you with your case. Call Brach Eichler Injury Lawyers at (973) 364-8300 or contact us online today.
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Written by: Brach Eichler Injury Lawyers Last Updated : January 10, 2025We are the trial attorneys with the experience and knowledge to get you the results you deserve. At Brach Eichler Injury Lawyers, we take time to get to know you, as well as your case. We are committed to excellence. It is important for our team to understand your fears, concerns and expectations. We are always available to answer any questions, and are willing to come to you if you are unable to come to us.
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