If you have lost earning capacity in your injury case, you might have any number of questions about how to recover that. The easiest way to get answers is to contact Law Offices of Fernando D. Vargas at 909-982-0707 for a free legal consultation. You can also keep reading to get answers to some of the most common questions. We look forward to helping you find the best way forward after your accident.
Do I Have to Sue for Lost Earnings Right Away?
No, but we recommend you contact a personal injury attorney right away. In most cases, you will have two years to file but some situations (such as those in which the government is a defendant) must be filed within six months. Note that the “clock” begins on the date of the injury or the date the plaintiff discovered the injury. For example, if you were involved in a slip and fall accident but did not realize you had sustained a head injury for several weeks, the clock would begin the date you discovered the injury.
What Types of Income Fall into the Category of “Lost Earning Capacity?”
It is not uncommon for a person to not be sure what exactly lost earning capacity is. It is the difference between what you earned and what you would have earned if you had not suffered an injury. Various types of income and benefits can be included, including salary, raises, overtime pay, 401K or other profit-sharing contributions, commission, bonuses, income from self-employment, and other perks, such as free meals or travel.
How is Lost Earning Capacity Calculated?
There are a number of factors that can affect how much a person receives for lost earning capacity. For example, a judge or jury is likely to look at how long the injuries are likely to last, when the plaintiff is likely to be able to return to work (if they are), how old the plaintiff is, the plaintiff’s life expectancy before the injury, and the number of working year’s the plaintiff likely had before retirement.
Other factors that might be considered include the victim’s health before the accident, their past earnings, and whether their income was fixed or based on their performance. They might consider the terms of any employment contracts in play, the policies of the company re promotions, cost of living increases, raises, and similar benefits, and the available opportunities that would have been available in the plaintiff’s field.
Do I Have Options if I Am Still in School?
Yes. If you are in school for a job that you will no longer be able to perform at the level you would have before the accident, then your lost earnings can reflect that. For example, if you are in culinary school and can no longer walk, your options of being a line cook might be diminished.
