Deciding when to return to work after a Sacramento car accident can be a difficult process. The circumstances surrounding the accident can create financial pressure to go back to work sooner than you should.
This is how insurance companies are able to get people to accept low offers even though they may be entitled to much more. Unfortunately, the reality of some car crashes is that you may miss an extended period of time from work, or not be able to return to your previous position.
Whether you’ve missed time at work in the past and/or will continue to in the future, California law allows for recovery of that income as explained more below.
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1.Lost Wages vs.Lost Earning Capacity in California
Like other personal injury damages, California law breaks down lost income into past and future earnings.
“Lost wages” in California refers to any income and earnings before a lawsuit is filed or a settlement agreement is reached.
“Lost earning capacity” refers to the injured victim’s ability to earn money in the future. This amount is what the plaintiff would reasonably have made if the injury never happened.
2.How long does the injury have to keep me out of work
The injury sustained in the car crash doesn’t need to be permanent. A plaintiff may be able to obtain lost earning capacity when the injury hasn’t fully healed by the settlement date or trial.
This will usually occur with more serious or permanent injuries due to the potential length of litigation and recovery time. An example of this may be a traumatic brain injury.
It’s also possible that a settlement may be reached quickly if the insurance company accepts liability. However, this would need to take into account any potential lost earning capacity if the injury hasn’t fully resolved yet.
3.What is included in “lost earning capacity”?
“Lost earning capacity” is the difference between:
• What the injured person would have earned if not injured, and
• What the injured person will earn given the injuries.
This can include the following, but isn’t limited to this list:
• Salary or hourly wages
• Overtime
• Commission from sales
• Bonuses
• Income from self-employment
• Raises
• Paid vacation, sick leave, personal days
• 401K or other retirements
• Additional lost benefits from employment such as cars, meals, or travel
4.What can affect the amount of my damages?
Some factors that will be taken into consideration in determining lost earning capacity for an individual in California are:
• Severity and length of injury or how long incapacity will last
• Whether the injured person can return to their original job
• Age of injured person
• Life expectancy before the injured happened
• Years left before retirement
• Health before the accident or injury
• Past earnings and employment
• How income was earned, salary, hourly, bonuses, etc.
• Terms of employment
• Employer’s policies of promotions and benefits
• Potential for promotion in the field
• Performance reviews
• Additional relevant information to give an idea of the injured person’s past role and envision what a future role may be or would’ve looked like
5.Can you recover lost earning capacity if you’re inexperienced or still in school?
In California, it is not a requirement to show employment history in a field to obtain lost earnings. For example, a college student who is studying to be an in-home care nurse suffers a serious knee injury in a car accident requiring replacement surgery. Her doctor explains that she must avoid activity that stresses her knee in the future. Because of the physical lifting requirements for an in-home care nurse, her earning capacity has been diminished.
6.Proving Lost Earning Capacity
In many cases where lost earning capacity is an issue, your car accident attorney will have to hire expert witnesses to support your position. This is because they must be reasonably certain to be recoverable in a California personal injury case.
Depending on the extent of the injury, there may be several witnesses and expert witnesses to help assess your damages for lost earning capacity.
To support proof of lost earning capacity of the injured victim, there will usually be testimony from:
• Their employer
• Their treating doctor(s) and/or surgeon
• Vocational rehabilitation expert to discuss whether they can return to work
• Economist to provide an opinion of financial expectations
• Family, friends, and co-workers to discuss how the injured person was before the injury, including goals, interests, and activities
There are many myths about personal injury attorneys. Many of these stories scare people from seeking compensation for their injuries or hiring a car accident lawyer. In some cases, people believe they will just get better even without seeking medical attention.
Our firm offers case evaluations at no cost to you. If you were injured because of the negligence of someone else, it’s not your burden to pay and deal with the pain and suffering alone. Our car accident attorneys will review your medical records and bills, lost earning capacity, lost wages, and other damages that were a result of your accident injury.
Call us at (916) 619-5452 or fill out our form on our website to schedule your no-cost case evaluation today!
