It is crucial to understand the difference between lost wages and the loss of earning capacity. This could help you obtain maximum compensation for your injury claim. A serious accident can impact your life in many detrimental ways.
This could include making it impossible to go back to work, either temporarily or permanently. Texas law allows an injured accident victim to seek financial recovery for the economic loss of missed time at work, both in the past and future.
What Are Lost Wages?
Lost wages represent the income an individual would have earned had they not been injured in an accident and subsequently required to miss work for recovery. This encompasses all forms of compensation, including regular salary, tips, accrued vacation time, and other employment benefits. Lost wages are intended to compensate for financial losses incurred during hospitalization, medical treatment, and periods of incapacitation. In calculating lost wages, several factors may be taken into account, such as regular earnings, potential overtime pay, lost opportunities for income advancement (including raises, bonuses, and commissions), the value of lost health insurance coverage, and lost retirement contributions.
What Is Loss of Earning Capacity?
Loss of earning capacity means that you cannot earn as much money as you did before because of a permanent injury or disability from an accident.
This category of damage is only applicable to victims who have experienced life-altering injuries and disabilities. These injuries may include a spinal cord injury that results in paralysis, permanent brain damage, or an amputation.
Lost earning capacity can also refer to the difference between what the victim used to make before the injury and what they can make now, considering their new level of ability.
For instance, the victim's employer might decide to keep them as a part-time employee instead of a full-time employee. In such a case, the victim could be eligible for the difference between their previous salary and their current salary. This would serve as compensation for their lost earning capacity.
If the victim's injury prevents them from working in any capacity, they might still be eligible for compensation. They may be able to get back the full amount of their lost salary for the number of years they would have been able to work. This amount would be adjusted for possible raises, promotions, and inflation. Also, the victim may also receive compensation for their lost 401K benefits, stock options, and retirement benefits.
The value of the compensation depends on various factors. This could include the extent of the disability, the age and overall health of the victim, and their income before and after the accident.
How Do You Prove Losses of Income?
If you get injured in an accident in Dallas that takes you out of work you have options. If you are unable to work for a brief period or the foreseeable future, call us to discuss your options. You may be eligible for financial compensation for past, current, and future lost wages. It is up to you or your personal injury lawyer, however, to prove your losses of income before you can recover for them financially.
Pay stubs, employment documents, W2s, tax documents, a letter from your employer, and medical records can prove lost wages. Customer invoices and billing statements can help as well. To recover for lost wages and lost capacity to earn, you or your attorney must show you had income losses before the lawsuit and will lose earnings after.
What Is the Average Settlement for Lost Wages and Loss of Earning Capacity?
There is no average settlement amount for lost wages in Texas. Every injury claim and client is unique. The value placed on your lost earnings and capacity to earn will depend on many factors. Some of these could include your age, injury, and income.
For an in-depth case review and an accurate evaluation of your lost wage value, contact an attorney in Dallas today. An experienced workplace injury lawyer can help you negotiate for maximum financial compensation for lost wages and lost capacity to earn.