An accident or personal injury can cause you to be out of work for several weeks or months. In the worst cases, you might be out of work permanently because of an injury that was another party’s fault.
Diminished earning capacity and loss of earnings are an important part of your economic damages claim in a Georgia personal injury case, in addition to your non-economic damages for things like pain and suffering.
Loss of earnings and diminished capacity damages can add up to a substantial amount. Before you accept a settlement agreement, let an experienced personal injury attorney review your case to ensure you receive all the funds you are entitled to by law.
Calculating the Amount of Lost Wages for a Savannah Personal Injury Case
Your loss of earnings is the total income you would have earned had you been able to work. If your ability to work has been permanently affected, you may also be entitled to compensation for diminished earning capacity, ensuring that you receive financial support for the long-term consequences of your injury.
Examples of earnings included in economic damages include:
- Hourly pay
- Salary
- Bonuses and commissions
- Overtime pay
- Business income
- Tips
- Earnings as an independent contractor
- Part-time income
- Freeland and gig work
Calculating the value of a loss of earnings claim requires you to prove how much you earned before the accident. Evidence of income can include income statements, pay stubs, tax returns, and 1099s. If you earn a salary, you multiply your weekly salary by how many weeks you were out of work.
Determining the value of loss of income when your income fluctuates is more challenging. For example, suppose you earn an hourly wage, but your hours differ weekly, or you earn tips and commissions that change every pay period. In that case, we would likely use an average of your income for the past six to 12 months to calculate loss of income.
Proving You Could Not Work Because of Your Accident Injuries
In addition to proving how much you would have earned had you been at work, you must prove that your injuries prevented you from working. The insurance company may argue that you could have worked but chose not to.
If so, your attorney may retain a medical specialist and vocational expert to evaluate your condition. Experts can offer unbiased testimony explaining how your injuries prevent you from performing your specific job duties.
These medical experts may perform a functional performance examination. The examination assesses your ability to perform various physical activities, including balance, strength, neuromuscular control, and flexibility. The test determines whether your injuries allow you to perform the tasks to do your job.
Calculating the Value of Diminished Earning Capacity for a Personal Injury Case
Your ability to earn income is referred to as your earning capacity. It differs from lost wages because it calculates:
- The amount you can earn going forward, given the limitations of permanent impairment; and,
- The amount you could have earned had you not sustained the injury.
The value of a diminished earning capacity claim is the difference between the amounts. Had you not been injured, you would have expected to continue earning the same income level. You may have also received raises, bonuses, and other incentives throughout your career.
However, if your injuries resulted in a disability or impairment that restricts your abilities, you may not earn the same level of income.
Factors used to determine how much your claim is worth include, but are not limited to:
- The type of job you had before the impairment
- The type and severity of your impairment
- Your skills, education, training, and experience
- How your impairment impacts your physical and/or cognitive abilities to perform tasks
- Whether your skills and training transition into another job
- The outlook for your career and expected inflation rates
- Your age and expected retirement age
- The income you can receive based on the jobs you may qualify to do with your impairment
Proving the value of diminished earning capacity can be challenging. You are estimating values for things that have not occurred. Experienced injury lawyers work with several experts to gather evidence that supports your claim.
How Does Georgia’s Contributory Fault Laws Impact Loss of Earnings/Diminished Earning Capacity Claims?
Georgia’s contributory fault law applies in most personal injury cases. If a court determines your blame for causing your injuries is equal to or more than 50 percent, you cannot recover damages. However, if your fault is less than 50 percent, you may recover some damages.
For example, suppose a jury decides your fault is 60% for causing the car accident that resulted in your injuries. If so, the law bars you from receiving damages. However, suppose the court decides instead that your fault level is 30%. In that case, the court would reduce your damages by 30 percent.
Your loss of income is included in economic damages. Therefore, contributory fault could significantly impact how much you receive for your claim.
What Is the Statute of Limitations for Filing Claims for Loss of Earnings/Diminished Earning Capacity?
Georgia has a two-year deadline for most personal injury lawsuits. The deadline begins to run on the injury or accident date. Courts can dismiss personal injury lawsuits filed after the date expires.
There are exceptions to this rule. The deadline for your case could be shorter or longer. Therefore, we encourage you to seek legal advice as soon as possible after your injury.
Learn More About Your Legal Options During a Free Consultation With Our Savannah Personal Injury Lawyers
Loss of earnings can be a substantial portion of your personal injury claim in Georgia. Our attorneys at Bowen Painter Injury Lawyers will diligently work to maximize your recovery for all economic and non-economic damages. Call us at (912) 335-1909 for a free consultation with an experienced Savannah personal injury lawyer.