You may be unable to work at all in the weeks or months following a serious crash. Even after you get back on your feet, the injuries you suffered may continue to limit the jobs you can perform, the hours you can work or the income you can earn.
That long-term impact is where loss of earning capacity becomes important. This type of loss is distinct from the wages you already missed because of your injuries.
Loss of earning capacity is all about your future
A reduced earning capacity focuses on how your injuries may affect your ability to earn an income in the future. It applies when an accident leaves you with limitations that reduce your ability to work or compete for the same employment opportunities you could pursue before the crash.
For instance, you may return to your previous job but be unable to take on overtime, perform certain physical duties or advance into positions that require abilities affected by your injuries. You may be forced to change careers, accept lower-paying work, reduce your hours or give up certain professional opportunities, which would not have been the case had the accident not occurred.
How is the loss evaluated?
Determining loss of earning capacity requires looking beyond your current paycheck. Evidence may include your:
- Age and remaining working years
- Education and professional training
- Work history and occupational skills
- Physical or mental limitations caused by the crash
- Ability to perform your previous occupation
- Post-accident employment opportunities and earning potential
Medical records can help establish the nature and permanence of your limitations, while employment records, vocational evidence and other financial information may help demonstrate how those limitations affect your future livelihood.
Protecting your interests after a crash in Montana
Returning to your old job does not automatically mean your earning capacity has been fully restored. If a car accident has permanently affected what you can earn, seeking professional legal guidance can help ensure such damages are not overlooked when pursuing a car accident claim.