Has an accident or injury caused you to miss time from work? You may recover compensation for your loss of income by filing a personal injury claim. Ohio tort laws provide compensatory damages for victims when a party causes their injury because of intentional torts, negligence, or other wrongful acts.
This article explains loss of earnings and diminished earning capacity in personal injury cases.
What Is Loss of Earnings in an Ohio Personal Injury Case?
Loss of earnings is included in economic damages. Your economic damages are the financial losses and expenses you incur because of the accident, injuries, and recovery. Your loss of income includes all income you would have earned had you not been injured.
Examples of loss of earnings include, but are not limited to:
- Salary
- Hourly wages
- Part-time income
- Bonuses
- Tips
- Commissions
- Overtime pay
- Business income
- Earnings from gig work, freelance, and independent contract work
You must prove how much money you lost because of the accident and your injuries. Therefore, you will need evidence of your income, such as tax returns, pay stubs, 1099s, and income statements. In some situations, you may need a statement from your employer verifying your income.
Diminished Earning Capacity Claims in Personal Injury Cases in Lima, OH
Diminished earning capacity refers to your ability to earn income in the future. It arises in a personal injury case when the victim sustains a permanent impairment or disability that impacts their ability to work. The impairment may prevent them from working at all.
On the other hand, a victim may sustain a partial impairment. They can work, but their impairment prevents them from earning the same level of income they did before the injury.
Medical Evidence Proving You Could Not Work
Determining the value of loss of earnings and diminished earning capacity begins with medical evidence proving you could not work. Your doctor should provide a statement explaining why your injuries prevent you from working.
Insurance companies may challenge your medical evidence. If so, you may be required to complete an independent medical examination (IME) to confirm your physician’s medical findings. However, an IME may be conducted by a physician hired by the insurance company, which may lead to a bias in favor of employers.
You may need to see a medical specialist and a vocational professional for expert opinions. Experts can assist victims by providing reports explaining their impairments and inability to perform specific tasks.
Calculating the Value of Loss of Income and Diminished Earning Capacity
You must establish a value for how much income you lost or will lose because of your injuries. Here is how loss of income and diminished earning capacity can be calculated:
Past Loss of Income
You can receive reimbursement for loss of earnings for the time you could not work. Therefore, the value of loss of earnings equals all income you would have earned from the injury date through the date your doctor releases you to return to work.
If you earn a salary, you multiply your salary by the number of pay periods you missed. Calculating the value of loss of earnings becomes more complicated if your income fluctuates. In many cases, an average of past earnings for six months to a year may be used to calculate loss of earnings.
Diminished Earning Capacity
Calculating the value of future lost wages and earnings requires more work. If your impairment prevents you from working or reduces the money you can earn, your attorney may consult with financial professionals and other experts to estimate future earnings.
Factors experts use to estimate the loss of future earnings include, but are not limited to:
- Your injury and the severity of impairment
- Whether you can perform any type of activities to earn income
- The type of job you had before your injuries
- Your education, skills, experience, and training
- Whether your skills and training can transition into another profession or job
- Your age and expected retirement age
- The rate of pay expected for your profession or job
- The amount you can earn given your limitations and impairments
- Expected inflation rates and employment outlook
Insurance companies will undervalue loss of earnings and diminished earning capacity whenever possible. An experienced injury lawyer understands what is involved in calculating loss of earnings and how expert witnesses can strengthen the evidence proving your claim.
How Does Contributory Fault Impact a Claim for Loss of Earnings/Diminished Earning Capacity in Ohio?
Ohio has adopted a modified contributory fault standard for apportioning damages in personal injury cases. Under this rule, contributory fault does not bar a victim from receiving damages unless the victim’s fault is 51% or more.
When the victim’s fault is below the bar amount, the judge reduces the compensation by the percentage of fault. Therefore, if the jury finds you were 15% at fault for causing a car accident, your loss of earnings and other damages are reduced by 15 percent.
Schedule a Free Consultation With Our Lima Personal Injury Lawyers
You deserve compensation for all economic and non-economic damages, including loss of income. However, you might have to fight for a fair settlement. Insurance companies often attempt to minimize or deny claims involving lost income or future earning capacity.
To avoid settling for less than your case is worth, contact the Law Office of Michael J. Tremoulis Personal Injury Lawyers for experienced help. Call us today at (419) 404-4444.
