When someone is seriously injured in an accident, the financial impact often goes far beyond the immediate medical bills or time missed from work. One of the most devastating and lasting consequences of a serious injury is the loss of a person’s ability to earn a living in the future. This is known in personal injury law as loss of earning capacity, and it can dramatically affect your quality of life, long-term stability, and financial security.
At Arnold & Itkin, we understand how a serious injury can derail your life and your career, leaving you wondering how you’ll support yourself or your family in the years to come. We understand the stress this causes, which is why we fight for compensation that reflects not just what you’ve lost up until today but also what you'll miss out on for the rest of your life as a result of someone else's careless, negligent, or reckless actions.
Loss of earning capacity refers to the diminished ability to earn income in the future because of a permanent or long-term injury. This is different from lost wages, which refers to the actual lost paychecks you’ve missed due to being out of work as you recover or heal from your injuries.
For example, if you broke your leg and missed two months of work, your claim might include lost wages for that missed time. If that injury caused permanent damage that prevents you from returning to your former job, or forces you into lower-paying work, you may be entitled to compensation for loss of earning capacity.
This type of loss is often included in personal injury lawsuits involving serious, lasting injuries, such as:
These are just some examples of serious injuries that may lead to loss of earning capacity. Any injury, illness, or medical condition, including severe mental health conditions, such as PTSD, that limits a person’s ability to work or advance in their career can result in grounds for seeking these types of damages.
How Is Loss of Earning Capacity Calculated?
Calculating loss of earning capacity can be complex. Unlike lost wages (which can usually be proven with pay stubs), this type of damage involves projecting what a person could have earned over time had they not been injured.
Some of the key factors considered include:
Your age at the time of injury
Your occupation and career trajectory
Your education, training, and skills
Your employment history
The severity and permanence of your injury
Your ability to perform similar or alternative work
Various experts are often brought in to estimate the difference between your earning potential before and after the injury. These professionals may consider things like inflation, raises, promotions, benefits, and retirement plans.
At Arnold & Itkin, we work with trusted experts to help ensure your future losses are fully accounted for and that the insurance company doesn’t get away with minimizing the long-term impact of your injury.
Why This Compensation Matters
Loss of earning capacity isn’t just about numbers. It’s about stability, dignity, and a sense of purpose. For many people, their work is a key part of their identity and livelihood. When that’s taken away due to someone else’s negligence, the damage can be deep. By pursuing compensation for lost earning potential, you’re not asking for a handout; you’re seeking justice for what’s been unfairly taken from you.
This kind of financial recovery can:
Provide long-term financial security
Offset the need for lower-paying work
Cover retraining or education costs
Help support your family
Protect your future
Loss of Earning Capacity vs. Lost Wages
These types of damages are similar but distinct. Here's a quick breakdown:
Lost Wages
Loss of Earning Capacity
Covers past income that’s already been lost due to an injury
Covers future income you can no longer earn due to an injury or condition
Based on actual pay stubs and time off from work to recover
Based on expert projections of future earning potential and expected income
Relatively easier to prove due to the availability of paystubs
Typically requires expert analysis to establish and legal advocacy to obtain
How Arnold & Itkin Can Help
Loss of earning capacity damages can be complex and they are often contested by insurance companies. They may argue that you can still work, that your injuries aren’t that limiting, or that you could find another job just as easily. Without strong legal representation and expert evidence, you risk being undercompensated.
That’s where we come in.
At Arnold & Itkin, we’ve handled some of the most challenging and high-stakes injury cases in the country. We know how to build powerful, evidence-based claims that prove the real value of what you’ve lost—and we don’t back down until we get results. We’ve recovered billions of dollars for our clients. We’re ready to fight for you, too.
If your injury has affected your ability to work, you may be entitled to compensation for lost earning capacity. Contact Arnold & Itkin at (888) 493-1629 for a free consultation with our personal injury attorneys.
