Loss of Earnings/Diminished Earning Capacity

When you are out of work because of an accident or injury, it can cause severe financial hardship. If another party caused your injury, you may be entitled to compensation for your loss of earnings and diminished earning capacity. However, recovering fair compensation for your losses could be challenging if you don’t have a lawyer to help.

Our attorneys at Zehl & Associates Injury & Accident Lawyers have recovered billions of dollars for our clients, including many of the largest accident recoveries in Texas history.

Table of Contents

• What Is Included in a Texas Loss of Earnings Claim for a Personal Injury Case?
• What Is Diminished Earning Capacity?
• Calculating The Value of Loss of Earnings/Diminished Earning Capacity for a Houston Personal Injury Case
• Does Contributory Fault Impact a Claim for Loss of Earnings/Diminished Earning Capacity in Texas?
• Schedule a Free Case Review With an Undefeated Houston Personal Injury Lawyer

What Is Included in a Texas Loss of Earnings Claim for a Personal Injury Case?

A loss of earnings claim represents the income you would have received had you not sustained an injury. It arises when another party causes your injury because of their intentional torts, negligence, or other wrongful acts. Your loss of earnings is included as part of your economic damages.

Loss of earnings includes all types of income, such as:

• Hourly wages
• Salary pay
• Overtime earnings
• Tips
• Commissions
• Earnings from gig work and independent contract work
• Bonuses
• Freelance income
• Part-time work

You may also be entitled to reimbursement of perks and benefits you would have earned had you been able to work. Perks could include paying for cell phones and using a company car.

Benefits may include paid time off, sick time, and vacation time you would have earned or used during your recovery. Benefits can also include contributions to retirement accounts matched by your employer.

The value of loss of earnings is the amount that you would have earned had you been able to work. When your income fluctuates, calculating this amount can be difficult. If you allow an insurance company to calculate the value, it may pay less than your damages are worth.

What Is Diminished Earning Capacity?

Your injuries may allow you to perform some work. However, let’s say your doctors state that you cannot perform the same type of work or you are limited in the activities that you can perform. If that’s the case, your ability to earn income decreases.

In that situation, you can receive compensation for your loss of earning capacity. The value of diminished earning capacity is the difference between what you can earn given your injuries and what you would have earned had you not been injured.

Calculating The Value of Loss of Earnings/Diminished Earning Capacity for a Houston Personal Injury Case

Our legal team carefully analyzes your loss of earnings to determine the maximum value of your losses. We gather evidence of the income you could have earned, such as prior W2 statements, 1099s, income tax returns, and income statements. We must have proof of income to include in a loss of earnings claim.

We also gather information from your doctor. We need your doctor to state that you cannot work because of your injuries or because your injuries limit the type of work you can perform. The dispute may come from the doctor’s evaluation of your injuries. If so, we may seek an opinion from a medical expert to confirm your diagnosis.

Earning capacity can be tricky to judge. We analyze numerous factors to determine how your injury impacts a claim for lost wages and earning capacity. Those factors include:

• The type of injuries you sustained in the accident
• The severity of the injuries and the impairments/disabilities they cause
• Whether you can return to your job with or without restrictions
• The type of restrictions you must follow to work
• Whether you can perform sedentary work, such as sitting at a desk
• Your current age and the age you expect to retire
• Your education, skills, and experience
• The type of work you perform and the outlook for your job

You may be entitled to compensation for diminished earning capacity and future lost wages when your injuries result in life-long conditions. However, you may also experience a short-term loss of earnings/diminished earning capacity. In either case, you deserve to be compensated fully for the money you would have earned had it not been for the negligence or wrongful acts of another party.

Does Contributory Fault Impact a Claim for Loss of Earnings/Diminished Earning Capacity in Texas?

The Texas contributory fault standard is codified in the Civil Practice and Remedies Code §33.001. It states that a claimant (i.e., injured party) cannot receive damages if their percentage of responsibility for causing their injuries is 51 percent or higher. Therefore, if a jury finds you were 55% to blame for causing your accident, you could not recover any money for your non-economic or economic damages, including loss of income.

However, if you are less than 51% responsible for causing your injuries, you can receive some money for your claim. Your damages are reduced by the percentage of your fault. For instance, if you were 30% to blame, you would receive 70% of your damages.

Insurance companies use contributory fault to reduce or deny valid claims. Don’t let this happen to you. Talk with our personal injury lawyers before you speak with an insurance adjuster about your claim.

Schedule a Free Case Review With an Undefeated Houston Personal Injury Lawyer

At Zehl & Associates, our legal team works diligently to document all loss of income for your personal injury case. If you have questions about an injury claim, call our law firm at (888) 603-3636  or schedule online a free case review with one of our record-setting Houston personal injury attorneys.