Suppose you suffered an injury in a Georgia accident caused by someone else’s negligence and can no longer work as you once did. You could be staring at a future where you make significantly less money than before the incident. As you pursue compensation for your losses, you’ll likely hear two phrases: loss of income and loss of earning capacity.
Many people get confused by these terms and don’t know the difference between the two. Understanding the difference between loss of income and loss of earning capacity can help you better identify the types of damages you may be entitled to after a change in your ability to work.
Loss of income refers to the money you did not earn while taking time off to recover from your injuries. This typically includes regular wages, overtime, bonuses, and other compensation you would have received had you not been injured. Loss of earning capacity, on the other hand, looks ahead.
It projects the likely decrease in future income due to permanent physical or cognitive limitations that affect your career path or ability to advance. If you expect to pursue a claim for either, your Georgia personal injury attorney must separate them to build an accurate case for damages.
For a free consultation, please contact us online or call (706) 354-4000 today.
What Counts as Loss of Income in Georgia
Loss of income refers to wages you missed between the time of your injury and the date of settlement or trial. This type of claim requires documentation. Pay stubs, tax returns, and employer statements are commonly used to show how much you typically earn and how much work you missed.
For instance, a full-time worker in Columbus earning $1,200 per week who takes eight weeks off for surgery could claim $9,600 in lost wages. That amount must be supported by evidence, and the injury must be responsible for the time away from work.
Other qualifying situations may include:
- Self-employed individuals—canceled client work due to recovery time
- Commission-based workers—missed opportunities tied to product launches or sales periods
- Restaurant staff and bartenders—lost tips and shifts because of physical restrictions
A temporary disability does not disqualify you from suing for loss of income. As long as your medical records and employment history support your claim, you can seek compensation for the wages you lost while recovering.
Understanding Loss of Earning Capacity
Loss of earning capacity refers to how your future income may decline because of lasting physical or mental limitations caused by an injury. You may qualify for this type of compensation even if you’ve returned to work, primarily if you now work fewer hours, accepted a lower-paying position, or missed promotions that would have increased your earnings.
Consider a factory worker who loses function in one hand and takes a desk job that pays less. That drop in salary represents a clear reduction in earning capacity. In another case, a professional athlete forced into early retirement after a spinal injury could face a steep decrease in lifetime income due to the sudden end of their career.
These claims often rely on expert testimony. A vocational expert will assess how your injury impacts your ability to perform certain jobs. An economist can calculate the difference between what you would have earned without the injury and what you are reasonably expected to earn now. Together, this evidence supports a claim for loss of earning capacity.
Suing for Loss of Income in Georgia
Pursuing damages for loss of income involves showing a clear connection between your injury and the time you spent away from work. Detailed evidence helps prove that connection. Pay records, employer letters, and medical documents all work together to support your case.
Claims for reduced earning capacity involve a broader look at your career. You must prove that the injury limits your future opportunities to get compensated for this loss. The court will consider your age, education, job experience, and medical prognosis.
An experienced legal team can work with experts and help you gather the proper evidence and explain how the injury impacts your current and future financial outlook.
Speak with a Georgia Injury Attorney About Your Options
If an injury negatively affects your income, it is important you have an attorney who understands how to present your case and maximize your damages.
At Blasingame, Burch, Garrard & Ashley, P.C., we help injury victims across Georgia pursue the full financial recovery they’re owed. This is a role we’ve proudly filled for more than 40 years.
To learn more about your rights, call us today at (706) 354-4000 to schedule your free consultation. You can also reach our Georgia personal injury attorneys by filling out our secure online contact form.
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