If you are hurt in an accident and cannot return to work at full capacity, you are owed compensation for the lost wages you face. When calculating these values, we compare what you could have made if the injury never happened to what you are expected to make now.
Calculating lost earning capacity means estimating how much you would have made at work for the rest of your life, then subtracting out what you are now estimated to make – which might be $0. This lets us see the impact your injury had on your future earnings.
For help with your injury claim, call Cap City Injury Attorneys’ Austin, TX personal injury lawyers at (512) 612-3110.
Future Lost Wage Calculations in Texas
To calculate the wages you will lose in the future, we need to know what you would have made and what you will make now. This means calculating your pre-injury wage and your post-injury wage, then subtracting the two.
Pre-Injury Wages
We can examine your pay from your most recent job before the accident and use that to estimate how much you normally made before the injury.
Whether you work for hourly wages or have a salary, we can transform those into weekly wages.
- Hourly wages can be transformed into weekly wages by averaging your weekly totals over a long period.
- Yearly salaries can be transformed into weekly salaries by dividing them by 52.
We usually assess lost earnings in terms of weeks missed and average weekly wages. If needed, we can easily convert rates to monthly or yearly rates.
Post-Injury Wages
If you are working after your injury, your injury usually reduces your wages in three ways:
- Limited hours you can work
- Limitations on the work you can perform mean taking a lower-paying job/position
- Limited abilities at your old job result in lower productivity and lower pay.
Not all effects are permanent, and some changes might be limited to just your recovery period.
Using the same sort of calculations as pre-injury wages, we can subtract post-injury wages from pre-injury wages to see how much you lost.
Duration of Lost Wages
Another factor is how long you will continue to be out of work. However, the path to recovery is different for everyone, and there may be three stages to consider:
Recovery
During your recovery period, you might not work at all, but you might expect that you will get back to work later. Medical experts can help us estimate how long you will need to recover.
After recovery, you may return to full capacity work, you may return to work with restrictions, or you might not be able to work at all.
Maximum Medical Improvement
As you recover, you will eventually hit maximum medical improvement (MMI). At this stage, you are essentially as improved as you can get, and your skills and abilities will likely remain at this level going forward.
Experts can help our Georgetown, TX personal injury lawyers determine how your wages will be affected from that point forward, what accommodations you will need, etc. We can estimate your wages going forward, through your expected retirement age.
Ongoing Total Disability
Your injury may force you to stop working entirely. This means that, going forward, there are no post-injury wages to subtract from your pre-injury wages in the calculation.
That means we claim your damages as the full expected wages you could have made before the injury, through your expected retirement age.
Personal Factors for Lost Earning Capacity
These personal and demographic factors all have a role in lost wage calculations.
Your Profession
People with higher-paying jobs lose out on more pay. Additionally, jobs with high growth opportunities give workers more to lose if they cannot advance in their careers. Some jobs – such as professional athlete – have a short window of opportunity that, once missed, doesn’t come around again.
Your Age
Younger people have more working years ahead of them. If they become totally or partially disabled at a young age, they will face more loss to their overall earnings going forward. Some jobs are also not fit for older people, meaning you may miss your window to return to certain professions.
Your Pre-Injury Abilities
If you had previous disabilities or impediments to work, you may have very few opportunities left after another serious disability.
Education
Without certain degrees or professional licensure, some fields may be closed to you. You may seek more school or job training to be able to find alternative work after your injury.
Expected Retirement Age
When looking at how many more years you have to work, one factor is when you will have retired. Some health conditions may affect how many more working years you have in you, even before the injury.
Career and Job Factors
Additionally, the contours of the job itself will play a large part in calculating lost earnings. The typical path of the career you are leaving behind will factor into how much your future lost earnings are worth.
Wages and Wage Growth
Some jobs may have low wages in the beginning, but a high opportunity for growth. We need to take into account the expected raises you would have received if you continued working.
Promotions and Opportunities
Similarly, some careers have a trajectory we can take into account. For example, many people take jobs specifically to get the experience needed to be a manager in 5 years or to start their own business in 10 years. These paths are predictable in many jobs and can be taken into account.
Overtime and Bonuses
While we may never know what overtime hours or bonuses you will have missed out on because of your disability, we may be able to compare your position to other similarly situated workers and industry standards.
Lost Earnings FAQs
Can You Get Future Lost Wages in an Injury Case?
Yes, both the wages you already lost and the wages you will miss in the future can be claimed in your case.
Does Unemployment Cover My Lost Earnings?
To qualify for unemployment, you usually need to be willing and able to work. A disability might make it hard to qualify for unemployment. Either way, claiming lost earnings in a lawsuit is likely the best way to get these damages covered.
What Part Do Doctors Play in Calculating Lost Earnings?
Your doctors will supply invaluable evidence about your abilities and disabilities. We can use their testimony and opinions to explain what work you can do going forward.
How Do Lawyers Calculate Expected Retirement Age?
There are actuarial charts and tables our lawyers can reference to estimate expected retirement ages for people in various demographics. We can also hire financial and medical experts for your specific calculations, if needed.
Call Our Texas Personal Injury Lawyers Today
For your free case evaluation, call (512) 612-3110 to speak with Cap City Injury Attorneys’ Leander, TX personal injury lawyers.