Being involved in a serious car accident is never fun, but it can change more than just your physical health. Your ability to work and earn an income can also be affected. When an injury leaves you unable to return to your job or limits your future earning potential, you may be entitled to compensation for lost earning capacity. Understanding the types of evidence required to prove your lost earning capacity is imperative during a personal injury claim or lawsuit. Work with an experienced San Mateo County, California car accident lawyer for more information and skilled legal advice during your case.
What is Lost Earning Capacity?
Lost earning capacity compensates you for the future income that you can no longer earn because your ability to work has been partially or permanently reduced. Depending on the type and severity of the injury you sustained, it could limit your movement, strength, endurance, memory, focus, decision-making, reliability, and more.
The result of these limitations could be that you are unable to return to the job that you previously had, have to work fewer hours and therefore earn less, or that you cannot work at all. For example, if you are a musician and play the flute, but your hand was amputated because of an accident, you can no longer perform. Or if you are a construction worker and have severely damaged your leg, you may no longer be able to do the heavy lifting that your job requires.
Personal injury law recognizes a diminished earning capacity as a type of economic damage, meaning that you can be compensated for the future loss of income that your accident and injury have caused.
How Can I Prove Lost Earning Capacity After a Car Accident in CA?
In California, for a plaintiff seeking compensation for the loss of ability to earn money, the burden of proof is establishing that it is reasonably certain that the injury sustained will cause you to earn less money in the future than you otherwise could have earned and proving the reasonable value of that loss. Relevant evidence in proving these things includes:
- Medical records: Doctor reports, diagnostic tests, physical therapy notes, and more are important in showing how your injury limits your ability to work and how long the injury is expected to affect you
- Employment/income records: Pay stubs, W-2s, tax returns, education, and employment history information will establish your prior income level, abilities, and career trajectory
- Vocational expert testimony: Vocational specialists can analyze how your injuries affect your skills, work options, and employability
- Economic expert testimony: Economic experts can project the amount of income you would have earned over your lifetime, adjusted for inflation and career growth
Courts and insurance providers will evaluate the above evidence to determine the reasonable value of the loss by comparing what you could have earned without the injury to what you can still earn with the injury.