Personal injury accident victims incur several different types of damages. Damages for current and future medical costs are easy to understand and damages for property loss is straightforward. Damages related to lost earnings; however, can be more complex. For this reason, I always take the time to explain the concept of lost earnings to new personal injury clients.
The calculation of lost earnings takes many things into account – how much work time has been missed and how much more time is needed to recover. Will recovery be complete or will the injured victim be unable to return to work ? Is the injured worker an hourly employee, salaried or self-employed? In addition to losing wages is there any impact on benefits, pensions, commissions, or bonuses. To be fairly compensated, it is important to calculate the totality of all accident related damages. This will often require the services of an experienced personal injury attorney.
What are Lost Earnings?
In the simplest terms, lost earnings is the income lost or expected to be lost as a result of injuries sustained in an accident. For someone who is paid hourly, this includes work time missed in order to see healthcare providers. Lost earnings for salaried employees includes the impact that time away from work has on benefits, commissions, bonuses or missed promotions. For someone who is self-employed lost earnings needs to be calculated based upon historical data and current trends. Often, when injuries are so serious that there is a significant amount of time away from work, the calculation of lost earnings requires the use of an economic expert.
How to Calculate Lost Earnings for an Accident Victim Who is Disabled
Sometimes accident victims’ injuries are such that they can either no longer work, or they can longer do the same type of work they did before the accident. When this happens the calculation of lost earnings damages will include a calculation for lost earning capacity.
This means that if an injured accident victim is unable to work, or has to get a new job that pays less, the reduction in earnings is considered to be lost earnings damages. The amount of these damages is calculated through what would be considered the accident victim’s date of retirement.
In severe cases such as these, the personal injury attorney representing the injured accident victim will hire a forensic economist to calculate lost earnings and prepare a formal report to be used in a settlement demand.
Contact an Experienced Long Beach Personal Injury Attorney for a Free Consultation
Your Injuries are Personal to Me
My law practice exclusively represents personal injury victims and does so with a deep understanding of their suffering and an absolute commitment to their recovery. I take your injuries personally, and that is why I directly handle all aspects of every case to ensure that you receive maximum compensation.
Call the Law Office of Michael D. Waks at 888-394-1174 or use the convenient online contact form to schedule a free consultation. You are under no obligation and you will never pay any money unless you recover damages for your injuries. I offer bilingual services as part of my comprehensive approach to legal representation and I am available 24/7 to talk to you about your case.
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