When someone is injured because of someone else’s negligence, the consequences can be life-changing. Medical bills, pain, and emotional stress can take a major toll. But another key impact that many people don’t realize right away is the loss of income.
If your injury makes it hard or even impossible to work, you may lose the ability to earn money now and in the future. In personal injury law, this is known as loss of earnings and diminished earning capacity.
What Is Loss of Earnings?
Loss of earnings, sometimes called lost wages, is the income you have already missed out on because of your injury. If you had to miss work due to hospitalization, recovery, or ongoing treatment, you may be able to recover that lost pay.
Loss of earnings only covers the income you missed from the time of the accident up to the present. It does not include future losses; that’s where diminished earning capacity comes in.
What Is Diminished Earning Capacity?
Diminished earning capacity refers to your future ability to earn money. If your injury causes long-term problems or a permanent disability that limits the type or amount of work you can do, your earning potential may be reduced for years—or even for life.
This type of loss is more complicated to calculate because it involves predicting future income and how your injury will affect your career over time.
How Are These Damages Proven?
In Missouri personal injury cases, you must prove both your loss of earnings and any reduction in your ability to earn in the future. This often requires medical records, employment history, and expert testimony.
To show loss of earnings, you might use:
- Pay stubs or tax records showing your normal income
- A note from your doctor saying you couldn’t work
- A letter from your employer confirming missed work days
- To show diminished earning capacity, your attorney may bring in experts, such as:
- Medical experts who explain how your injury will affect your ability to work
- Vocational experts who assess the types of jobs you can still do
- Economic experts who calculate how much income you will likely lose over time
Together, this evidence builds a strong case for why you deserve full and fair compensation.
Why This Matters in a Personal Injury Case
These damages are important because they affect your long-term financial health. Medical bills may be a one-time cost, but income loss can continue for years. Without the right compensation, you may struggle to support yourself or your family.
An experienced Missouri personal injury attorney can help you understand your rights and make sure your claim includes all possible income losses.
How Are These Damages Calculated?
There is no exact formula for calculating diminished earning capacity, but several factors are usually considered:
- Your age and life expectancy
- Your work history and skills
- The severity of your injury
- The impact on your future job options
- The difference in pay between your old and new job
Experts may create reports showing how much money you could have earned over your lifetime and compare it to what you are now expected to earn. The goal is to show how much you’re losing because of your injury. In some cases, this difference can amount to hundreds of thousands of dollars over time.
Missouri Law and Time Limits
If you’re injured in Missouri, there are time limits on when you can file a claim. This is known as the statute of limitations. For most personal injury cases in Missouri, you have five years from the date of the injury to file a lawsuit.
If you miss this deadline, you may lose your right to seek compensation. Because proving loss of earnings and diminished earning capacity can take time, it’s best to speak with a lawyer as soon as possible.
Contact Schultz & Myers Personal Injury Lawyers for a Free Consultation
Loss of earnings and diminished earning capacity are serious financial effects of a personal injury. They can deeply impact your ability to support yourself and your family. Understanding the difference between the two—and how they are proven—is key to making sure you get the compensation you deserve.
If you’ve been hurt in Missouri and can no longer work like you used to, contact Schultz & Myers Personal Injury Lawyers today at (314) 444-4444. The sooner you act, the better your chances of building a strong case and securing your future.
