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A Simple Guide to the Difference Between Lost Wages and Reduced Earning Capacity

A Simple Guide to the Difference Between Lost Wages and Reduced Earning Capacity

Someone else may be liable for paying you if you have lost or diminished your earning ability as a result of a personal injury in California. This, however, might be a perplexing procedure. Continue reading to get the answers to some of the most often asked questions concerning this topic. If you require a free legal consultation, call (626) 285-8815 at (626) 285-8815.

What do “lost wages” and “lost earning capacity” mean?

These may appear to be the same, but they are not. Income and earnings lost prior to the litigation or the effective date of the settlement are referred to as lost wages. Lost earning capacity, on the other hand, relates to the plaintiff’s inability to earn future revenue. It’s the amount of money the plaintiff would have received if they hadn’t been hurt. Because the loss has not yet happened, it is more difficult to show lost wages.

Do only permanent injuries qualify for damages for loss of earning capacity?

No. If a plaintiff’s injuries have not entirely healed and they are ready to go to trial or settle, they may be entitled to lost earning capacity damages for the expected period of their rehabilitation. This is common for injuries like traumatic brain damage, which are likely to last for a long period.

What is the deadline for filing a lawsuit if I have lost earnings?

If you have lost earnings in California, you do not have a limitless amount of time to suit. This is two years in most personal injury lawsuits in California. There are, however, several circumstances that might extend or shorten this period of time. Medical malpractice claims, for example, must be submitted within one year, and any case involving a government body must be resolved within six months.

What kinds of earning capacity can be included in lost earning capacity?

It may be straightforward to identify what your lost earning capability was if you earn a salary with clearly defined perks, but it may not be that simple for others. Salary, estimated overtime compensation, bonuses, 401K contributions, commissions, perks or bonuses (such as free meals or excursions), self-employment revenue, vacation or personal days, and increases are all included in this list.

What factors go into determining damages?

The amount of damages in a case involving lost earning ability is determined by a variety of criteria. How long the injury is anticipated to last, the plaintiff’s age, the plaintiff’s life expectancy prior to the accident, and whether or not they are likely to return to work are all issues your personal injury attorney is likely to evaluate as they bargain.

You may have a case if you have been harmed and are no longer able to earn as much as you used to. To schedule a free legal consultation, call (626) 285-8815 at (626) 285-8815 right now.

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