When you get compensated for an injury you sustained, you not only get covered for your medical bills and lost wages, you can also be covered for wages you will not be able to receive in the future due to either your recovery or a disability. Assessing future wage losses in an injury claim uses factors like a person’s age, education, and work history to calculate how much the injured party could have earned in the future if they had not been hurt. Learn more about the factors that go into a future wage loss assessment now.
Establish the Individual’s Pre-Injury Earnings
The first step in assessing future wage losses in a personal injury claim is to establish the victim’s pre-injury earnings. A qualified personal injury attorney would review past paystubs and tax returns to determine their client’s average income before the accident.
Review the Individuals Medical Reports
Once an attorney has determined a victim’s average income, the next step is to review the patient’s accident-related medical history. These documents outline the nature and severity of the person’s injury, including any permanent restrictions on their ability to work in the future. This step is essential, because a lawyer must prove the link between the injury and the person’s projected loss of future earnings.
Determine the Individual’s Work-Life Expectancy
Of course, no one can work forever, so in order to properly assess a person’s future wage losses, it is important to estimate how long they would have been able to work if they had not been hurt in an accident. This factor considers the victim’s age, current labor trends, and retirement goals.
Project the Individual’s Future Earning Capacity
It is important to assess the injured party’s ability to earn income based on their current health condition. To do that, an attorney would consider the possibility of job modifications, like reduced work hours, alternative employment options, or downgrading their current occupation, because the injured party must take reasonable steps to mitigate their loss of income before filing a claim.
Analyzing the individual’s work history, career trajectory, and potential for advancement before the injury is another critical factor in calculating potential losses, as is inflation rates and projected income growth. Just understand that it may be necessary to hire an expert vocational or economic analysts to provide a credible estimate.
What Calculation Methods are Used to Assess Future Wage Losses?
There are two common calculation methods an attorney may use to determine a victim’s future wage loss, including the “simple” approach. This approach subtracts post-injury earnings capacity from the victim’s pre-injury earnings, then multiplies that number by the person’s expected working years. The “work-life modifier” factors in the person’s age and work life expectancy. It is also common to include a “contingency factor” when making these calculations to account for uncertainties in the individual’s future earnings potential.
Talk to an Attorney for Help in Assessing Future Wage Losses in Your Injury Claim
Understanding how to calculate future wage losses could be confusing. Contact the experienced personal injury attorneys at Schechter, Shaffer, & Harris for answers. We have been on the winning side of the law since 1964 and our team is dedicated to protecting our client’s rights throughout the legal process, including getting you compensated for future medical expenses or lost work income.
