Reduced Earning Capacity in New York Personal Injury Cases

Hurt in New York City? We Can Help You

No one ever expects to be involved in a devastating accident or incident. When you suffer critical injuries, your entire life could be affected. In the worst cases, you may suffer injuries so severe that you are no longer able to continue earning a living the way you were before.

Fortunately, with help from an experienced legal advocate, you may be able to hold the liable party accountable and recover compensation for every loss, including your reduced earning capacity.

Our New York personal injury lawyers at Hecht, Kleeger & Damashek P.C. are here to help you get the most out of your claim after an accident has reduced your ability to provide for yourself and your family.

Contact our office for a free consultation today and to learn more about how much your case could be worth and what is next for your personal injury claim.

What Is Reduced Earning Capacity?

Reduced earning capacity refers to an individual’s inability to continue earning a living and their loss of potential future earnings. There are many ways in which you might suffer a reduced earning capacity. Some common accidents and incidents known for resulting in diminished earning capacity include:

Essentially, any time your injuries are so severe that you will not be able to return to your original line of work, you may have grounds for compensation for reduced earning potential.

How Do I Prove a Reduced Earning Capacity?

For your personal injury claim to be successful, your lawyer must prove the defendant’s liability. To do this, they will need to show that the elements of negligence have been met.

Here, your attorney will be tasked with proving that the defendant owed you a duty of care and somehow breached that duty of care.

For example, if your injuries occur through a car accident, and the defendant was distracted or drunk at the time of the collision, your attorney could show that the defendant breached their duty of care by operating a vehicle in an unsafe matter.

Factors That Can Prove Your Losses

Your lawyer will also need to show that the defendant’s breach in their duty of care was the cause of your damages. Your attorney will introduce compelling evidence that shows:

You had to take time away from work due to the extent of your injuries
The amount of money you lost due to your time from work

Other factors your attorney will take into consideration in proving the value of your reduced earning capacity include:

Your education and job experience
Your overall health
Your age
Anticipated inflation rates
Your career outlook
Your expected age of retirement
Whether you can find work in another industry
Whether you were on track to receive promotions or pay increases

What Evidence Can I Use in My Case?

The burden of proof in personal injury claims is based on a preponderance of the evidence. Your attorney will need to introduce compelling evidence that demonstrates your injuries have made it difficult or impossible for you to continue earning a living.

Some examples of evidence that could be used to support your claims include:

Statements from your physician
X-ray images
Prior paystubs
A copy of your personal income tax for the previous year
A statement from your employer that describes your position, the number of hours you work, and the number of hours or time you missed after the accident
Documents that indicate whether you are entitled to paid sick leave, vacation time, holiday pay, or other bonus pay
A current timesheet
Statements from your boss and colleagues
Bills or invoices
Your calendar of appointments
A personal diary or journal entries

How Do I Seek Compensation for Reduced Earning?

You may be able to recover compensation for a reduced earning capacity in multiple ways. Generally, these include filing a claim with the liable party’s insurance company or bringing your case to trial.

Investigating Your Accident

Your attorney will begin by opening an in-depth investigation into the ways your injuries occurred. This will help gather evidence to support your case and prove liability. Your lawyer will need to go over how your life has been affected by your injuries to account for every loss and calculate the value of your claim. This is where we will also determine the value of your reduced earning capacity.

Filing Your Personal Injury Claim

Your lawyer will file a claim with the insurance company and negotiate on your behalf. If the defendant does not have insurance coverage or your insurance settlement does not cover your damages, your next steps may include bringing your case to trial. Here, your attorney will advocate for maximum compensation for your damages before a judge and jury.

Workers Compensation for Reduced Earning Capacity

If your reduced earning capacity and related injuries result from an on-the-job injury, you may also be able to seek worker’s compensation benefits. Generally, these include compensation for your medical expenses, vocational rehabilitation benefits, and disability benefits. However, you may also be able to obtain compensation amounting to approximately 2/3 of your pre-injury weekly earnings for your reduced earning capacity.

However, worker’s compensation benefits are rarely enough to meet an injury victim’s needs adequately. If you go with a worker’s compensation claim alone, you may find yourself stuck with additional financial losses and lack sufficient compensation for your reduced earning capacity.

Having a personal injury attorney on your side can help prove earning loss and ensure you are seeking the compensation and benefits you are entitled to across the appropriate avenues.

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