An injury can affect your income in two different ways: you may lose pay while recovering, or your ability to earn money may be reduced going forward. Those losses require different kinds of evidence.
In the video above, Scott Marshall of Marshall Injury Attorneys explains the difference between past lost wages and future loss of earning capacity, including why future losses can require a more detailed assessment.
Past lost wages concern income already lost
Scott explains that past lost wages often involve a relatively straightforward calculation. Identify the period you could not work because of the injury and establish the income you lost during that time.
For example, if an employee misses three weeks of work without pay, their usual earnings and employment records can help document the loss. The claim still needs evidence connecting the absence to the injury.
Pay records, employer confirmation and medical documentation may help explain both the amount claimed and why the person was unable to work.
Self-employment can make the calculation more involved
Scott notes that calculating lost income may be more complicated for someone who is self-employed or owns a business.
Business revenue is not automatically the same as the owner’s personal earnings. Records need to explain what income was actually lost because of the injury and distinguish that loss from other changes in the business.
Depending on the circumstances, relevant information may include tax returns, financial statements, invoices, contracts and records of expenses. Your attorney can explain which documents are needed for your situation.
Future earning capacity asks a different question
Future loss of earning capacity concerns how an injury affects your ability to earn money going forward. It is not simply a calculation of appointments attended or workdays already missed.
Scott starts with a practical question: can you still perform the work you did before the injury?
Answering that may require comparing the demands of your previous work with the limitations identified by your treating providers. The assessment may also consider other work you could reasonably perform.
Scott’s example: a truck driver who could not return to long-haul work
Scott describes a client who earned $1,700 per week as a long-haul truck driver. After a back injury limited his ability to sit for extended periods, he could no longer perform that work and took another job paying $600 per week.
The difference was $1,100 per week. Scott uses that example to show how someone can return to employment while still experiencing a substantial reduction in earning ability.
That weekly difference is a starting point for the example, not a complete calculation of future damages. The expected duration of the loss and the evidence supporting the assumptions still need to be evaluated.
Why experts may be involved
Scott explains that different professionals may help address different parts of a future earning capacity claim.
- Medical providers can assess injury-related restrictions and their expected duration.
- A vocational expert may evaluate how those restrictions affect previous work and other employment options.
- An economist may assess the financial value of a supported future loss, including its value in today’s dollars.
- A forensic accountant may help analyze earnings and financial records when business ownership or self-employment makes the picture more complex.
Not every claim needs every type of expert. The appropriate evidence depends on the issues in dispute and the circumstances of the person’s work.
A future loss needs support, not just an estimate
Scott emphasizes that future earning capacity claims can involve more uncertainty than income already lost. The calculation relies on assumptions about work, earnings and the continuing effects of the injury.
Those assumptions need a sound basis. A projection should explain why the injury affects earning ability and how the amount claimed was developed.
Scott also discusses the practical cost of establishing the claim. Expert analysis can require time and money, so the likely value of that work needs to be considered in the context of the case.
Keep records of changes to your work
Keep information showing your earnings before and after the injury, periods of absence and any changes to your duties or hours. Preserve medical work restrictions and correspondence about returning to work.
If your income varies, provide a representative history rather than relying only on your highest-earning period. Accurate records help your attorney assess the loss and identify what further evidence may be needed.
Have questions about income lost after an injury?
Marshall Injury Attorneys can discuss how the injury has affected your work and explain what information may help evaluate past lost wages or reduced future earning capacity.
Request a free case review or call 727-772-5900.
This article summarises Scott Marshall’s video and provides general information only. It is not legal or financial advice and does not create an attorney-client relationship. The example discussed does not guarantee a similar outcome. Every case is different.
