What Is Lost Wages & Earning Capacity?

If you’ve been involved in a personal injury incident in New York, you may be facing a wide range of challenges. Medical bills, ongoing treatment, and emotional stress are just the tip of the iceberg. One of the most critical, but often overlooked, aspects of your claim is the effect your injury may have on your income, both immediately and in the future. This guide explains two key financial components of personal injury compensation: lost wages and lost earning capacity. Understanding these elements is essential if you want to pursue the full amount to which you may be entitled. If you’re dealing with these complex issues, consult experienced NYC personal injury attorneys. For personalized guidance, contact The Orlow Firm at (646) 647-3398.

Key Takeaways

1. Definitions Matter: Lost wages refer to earnings missed after an injury, while lost earning capacity relates to future income you can no longer earn.
2. Evidence Required: You’ll need solid documentation, such as medical records and work history, to support your claim.
3. Time Sensitivity: New York generally allows three years from the date of the accident to file a personal injury claim.
4. Legal Representation: A knowledgeable attorney can help maximize your recovery and handle the legal complexities.
5. For personalized advice and representation, call us today at (646) 647-3398.

Legal Definitions

Lost Wages:

In New York personal injury cases, lost wages refer to the income you were unable to earn between the date of the incident and the present due to your injuries. This includes:

• Hourly or salaried income
• Overtime and bonuses
• Tips and commissions
• Missed promotions or wage increases

Lost wages are usually easier to prove using past pay stubs, tax records, or employment verification.

Earning Capacity:

Lost earning capacity refers to your reduced ability to earn income in the future due to your injuries. This is a broader and more complex concept that considers:

• Your age, occupation, education, and skills
• Your career trajectory before the injury
• Limitations caused by your injury
• Expert evaluations (vocational, medical, or economic)

Unlike lost wages, lost earning capacity involves estimating future losses, often requiring expert analysis.

New York State-Specific Nuances: New York follows a comparative negligence system. If you’re partially at fault for the accident, any compensation, including lost wages and lost earning capacity, may be reduced in proportion to your share of the blame.

A clear understanding of these legal definitions can be essential when navigating claims for lost wages and earning capacity in a New York personal injury case. For guidance tailored to your situation, don’t hesitate to call us at (646) 647-3398.

How Can The Orlow Firm Help Maximize My Case?

1. Experienced Legal Counsel: Our experienced New York personal injury attorneys specialize in cases involving lost wages and lost earning capacity, as well as other types of personal injury claims. We understand the nuances and complexities of New York law and can guide you through every step of the legal process.
2. Comprehensive Case Evaluation: We provide a detailed initial assessment to thoroughly understand the specifics of your case, ensuring that all relevant angles are considered for maximum compensation.
3. Strong Negotiation Tactics: We have a proven track record of successfully negotiating with insurance companies to secure the settlement you deserve, often without the need for trial.
4. Vast Network of Experts: Our firm collaborates with medical professionals, vocational analysts, and financial experts to substantiate your claim, thereby enhancing your chances of receiving fair compensation for lost wages and lost earning capacity.
5. Thorough Evidence Gathering: We take the time to collect all necessary documents, records, and testimonials to build a strong case, from pay stubs to medical records and expert opinions.
6. Litigation Support: If your case does go to trial, our skilled litigators are prepared to represent you vigorously, leveraging years of courtroom experience to advocate for your rights.
7. No Upfront Fees: We operate on a contingency fee basis, meaning you pay nothing unless we successfully resolve your case. This allows you to focus on your recovery without the stress of legal fees.
8. Ongoing Communication: We prioritize client communication and will keep you updated on all developments in your case, ensuring that you’re never in the dark about your own legal situation.

**Attorney Advertising. Prior results do not guarantee a similar outcome.

The challenges of navigating a lost wages or lost earning capacity claim in a New York personal injury case can be overwhelming. Don’t risk your chances of receiving the compensation you are entitled to. For reliable legal advice tailored to your specific circumstances, contact The Orlow Firm at (646) 647-3398 today.

Types of Personal Injury Cases Where Lost Wages Apply

• Car Accidents: One of the most common types of personal injury cases in New York, car accidents often lead to significant injuries that prevent victims from returning to work for an extended period. Lost wages can be a crucial part of your compensation in such cases.
• Slip and Fall Accidents: Whether it happens in a public space or on private property, slip and fall accidents can cause serious injuries like fractures or head trauma, leading to time off work and, consequently, lost wages.
• Medical Malpractice: Cases involving medical negligence, such as misdiagnosis or surgical errors, can have long-lasting impacts on your health and your ability to work. Lost wages can be claimed in addition to damages for pain and suffering.
• Work-Related Injuries: While workers’ compensation often covers work-related injuries, there may be situations where a third party’s negligence is involved, allowing for a personal injury claim in which lost wages can be recovered.
• Pedestrian and Bicycle Accidents: These accidents often result in severe injuries, including broken bones, spinal injuries, and traumatic brain injuries, affecting your ability to earn. Lost wages become a crucial component of compensation in these cases.
• Assault and Battery: Though primarily criminal cases, victims of assault and battery can also file personal injury claims to recover lost wages if the incident led to time away from work.

Each of these types of personal injury cases has unique aspects that can affect your ability to claim lost wages. In New York, the specific circumstances of the incident, the severity of your injuries, and your employment situation will all play a role. If you’re unsure whether your case qualifies for lost wage compensation, consult with New York personal injury attorneys by calling (646) 647-3398.

How to Calculate Lost Wages

• Salary/Wages: The most straightforward way to calculate lost wages is to look at your salary or hourly wage. Multiply your hourly rate by the number of hours you typically work per week, and then by the number of weeks you’ve been unable to work due to your injury.
• Bonuses and Tips: If your income includes variable components, such as bonuses or tips, these should also be considered when calculating lost wages. You’ll need to average out your past bonuses and tips over a reasonable period, and then add that average to your regular salary or wages.
• Benefits: Don’t forget about non-monetary benefits like health insurance, retirement contributions, and other perks that you missed out on while unable to work. The value of these benefits can be added to your claim for lost wages.
• Self-Employment Income: If you’re self-employed, the calculation becomes a bit more complicated. You typically look at your net business income by subtracting your business expenses from your total revenue. This can be averaged over the months or years preceding the accident to obtain a reasonable estimate of lost income.
• Sick Leave and Vacation Days: If you used sick leave or vacation days to cover the time you missed from work, you could still claim these as lost wages. The reasoning is that you were forced to use these days due to your injury and therefore lost them.
• Overtime: If you consistently worked overtime before your injury and have records to prove it, this can also be included in your lost wages calculation.
• Periods of Unemployment: If your injury resulted in an extended period of unemployment that goes beyond your immediate recovery period, it’s important to consider how this affects your lost wages. You may need to consider the average time it takes someone in your industry to find a new job and calculate the corresponding lost wages accordingly.

Calculating lost wages in a New York personal injury case can be a complicated process that varies greatly depending on individual circumstances. Missing out on even one element could result in you receiving less compensation than you’re entitled to. For a thorough evaluation of your lost wages, consult with experienced NYC personal injury attorneys. Call us today at (646) 647-3398 for a detailed consultation.

How to Calculate Lost Earning Capacity

• Projected Career Span: The first step in calculating lost earning capacity is to understand your expected career span, taking into account your retirement age and any industry-specific norms.
• Current Earnings: This serves as the baseline for calculating future earning capacity. This includes not only your salary but also bonuses, tips, and any other forms of compensation.
• Skill Level and Education: Your skill set and education level directly influence your earning capacity. Special certifications, advanced degrees, or specialized skills can significantly increase the projected earnings you may lose due to an injury.
• Rate of Income Growth: Account for the natural growth of income over time. This can be based on past raises, promotions, or industry standards for income growth.
• Vocational Assessments: In some cases, a vocational expert may be consulted to assess your employability in your current field or other fields you might switch to. This can be essential if the injury prevents you from continuing in your current job role.
• Medical Evaluations: Medical experts can offer input on the long-term implications of your injuries, including how they may affect your ability to work in your current job or any job altogether.
• Inflation Rate: Future earning capacity must be adjusted for inflation. The rate used may vary, but it’s an essential factor to include for a long-term estimate.
• Discount to Present Value: This is a legal and economic concept that involves discounting future earnings to their present value. This reflects the idea that a dollar today is worth more than a dollar in the future due to the potential for investment opportunities.

Calculating lost earning capacity is more complex than calculating lost wages because it requires projecting future circumstances and considering factors such as inflation, career advancement, and long-term medical limitations. Due to these complexities, expert input from economists, vocational specialists, and medical professionals is often essential to support your claim. If you believe your injury has impacted your ability to earn income in the future, consulting with experienced New York personal injury attorneys is strongly recommended. Contact us at (646) 647-3398 for a comprehensive evaluation.

Evidence Required for Claiming Lost Wages and Earning Capacity

• Pay Stubs and Salary Records: One of the most straightforward pieces of evidence for lost wages is your pay stubs or salary records. These documents can establish your regular rate of pay, hours worked, and any bonuses or tips earned.
• Employment Verification: A letter from your employer confirming your employment status, job role, salary, and the time you’ve missed from work due to the injury can be a strong piece of evidence.
• Tax Returns: Particularly useful for self-employed individuals, tax returns can provide an overview of your annual earnings and help substantiate your claim for both lost wages and lost earning capacity.
• Medical Records: These are vital to prove that your injury was severe enough to prevent you from working. Records should include details of your treatment, prognosis, and any recommendations for time off work.
• Expert Testimony: For claims involving lost earning capacity, expert testimony is often necessary. Vocational experts can assess your ability to work, while medical experts can speak on the long-term implications of your injuries on your career. Financial experts may also be consulted to provide a detailed economic analysis.
• Witness Statements: While not as strong as other forms of evidence, statements from coworkers, family, or friends can corroborate your claim, particularly if they can attest to your work habits, hours, and any career growth or opportunities missed due to the injury.
• Contracts and Agreements: If you were under a contractual obligation for a particular job or project that you could not complete due to your injuries, these contracts can be used to establish lost income.
• Sick Leave and Vacation Records: If you used paid time off to recover, records showing the depletion of your sick leave or vacation days can be submitted as evidence for lost wages.

Gathering thorough and well-documented evidence is critical to supporting your claim for lost wages and lost earning capacity in a New York personal injury case. Even a single missing document could significantly reduce the compensation you may be eligible to receive. For detailed assistance with compiling and presenting the necessary proof, contact The Orlow Firm at (646) 647-3398.

Statute of Limitations in New York for Personal Injury Claims

• Three-Year Time Limit: In New York, the general statute of limitations for personal injury claims is three years from the date of the accident. This deadline applies to claims involving lost wages and lost earning capacity. Failing to file within this timeframe can result in the permanent loss of your right to recover compensation.
• Medical Malpractice Exceptions: In cases involving medical malpractice, the statute of limitations is typically two and a half years from the date of the alleged malpractice from the end of continuous treatment provided by the healthcare professional or facility in question.
• Claims Against Government Entities: If your claim is against a government entity in New York, like the city or state, you have a much shorter timeframe to file a Notice of Claim—generally within 90 days of the incident. You then generally have one year and 90 days to file the lawsuit itself. These deadlines are significantly shorter than those for standard personal injury claims.
• Discovery Rule: For injuries that are not immediately apparent, such as with latent medical conditions, New York law may allow the statute of limitations to begin from the date the injury was discovered, or reasonably should have been discovered. This is known as the “discovery rule.”
• Claims on Behalf of Minors: When the injured party is a minor (under 18), the statute of limitations is usually tolled (paused) until the individual turns 18. However, there are important exceptions, particularly in medical malpractice cases, where the tolling rules are more complex and often more limited.
• Mental Incapacity: If the injured party is mentally incapacitated at the time of the incident, the statute of limitations may be tolled until the person regains capacity. Once capacity is restored, the standard deadline typically resumes.
• Wrongful Death: For wrongful death claims in New York, the statute of limitations is two years from the date of the decedent’s death, regardless of when the accident or negligent act occurred.

Understanding these time limits is essential when pursuing compensation for lost wages and lost earning capacity. Missing even one filing deadline can result in the dismissal of your claim—no matter how valid it may be. To avoid these costly mistakes, consult experienced personal injury attorneys in New York. For personalized assistance, call The Orlow Firm at (646) 647-3398.

Pitfalls to Avoid

• Delaying Medical Treatment: Postponing care not only risks your health, but also weakens your legal claim. Medical records created promptly after your injury are crucial for linking the incident to your loss of income
• Ignoring Doctor’s Orders: Failing to follow your healthcare provider’s advice and treatment plan can be seen as an indication that your injuries are not severe, which may jeopardize your claims for lost wages and lost earning capacity.
• Incomplete Documentation: Without complete records of your earnings, time missed from work, and medical treatment, it becomes much harder to prove your losses. Keep all relevant documents—such as pay stubs, medical bills, appointment logs, and written communications.
• Settling Too Early: Quick settlement offers from insurance companies may seem attractive, but often fall short of covering long-term income losses. Consult with legal counsel before agreeing to any settlement.
• Ignoring Legal Deadlines: Missing the statute of limitations deadline will lead to your case being dismissed, regardless of its merits. Always be aware of and adhere to these critical legal timelines.

Pursuing compensation for lost wages and lost earning capacity in a personal injury case is not just about gathering documents—it’s about navigating legal strategy, deadlines, and technical details. A single error could jeopardize your financial recovery.

For a thorough, professional evaluation of your situation, speak with trusted New York personal injury attorneys. Call us today at (646) 647-3398.

Frequently Asked Questions

1. What Are Lost Wages? Lost wages refer to the income you lose as a direct result of being unable to work due to an injury. This can include your regular salary, hourly wages, tips, and even benefits such as vacation days that you were required to use.
2. How Are Lost Wages Different from Lost Earning Capacity? While lost wages cover the income lost from the time of the injury to the point of maximum medical improvement, lost earning capacity refers to the long-term loss of ability to earn money due to the injury.
3. Do I Need a Lawyer to Claim Lost Wages? While it’s technically possible to file a claim for lost wages on your own, the process can be complicated and requires thorough documentation. Legal experience is often crucial for maximizing your compensation.
4. What Evidence Do I Need for a Lost Wages Claim? Essential evidence includes employment verification, pay stubs, tax records, and medical documentation that clearly shows the extent of your injuries and the recommended recovery time.
5. What If I’m Self-Employed? If you’re self-employed, you can still claim lost wages, but the process is more complex. You will generally need to show a history of your earnings through tax returns, client invoices, and financial statements.
6. Is There a Time Limit to File a Claim in New York?: Yes, the general statute of limitations for personal injury claims, including lost wages and lost earning capacity, is three years from the date of the accident.

Every injury case is different—and lost income claims can be particularly complex. To ensure your case is properly handled and your losses are fully accounted for, consult an experienced New York personal injury attorney. Call us today at (646) 647-3398.

Why Choose The Orlow Firm?

At The Orlow Firm, we have extensive experience representing clients in a wide range of personal injury matters, including cases involving lost wages and lost earning capacity. Our New York-based attorneys are well-versed in the complexities of the legal system and work diligently to pursue fair and full compensation for each client.

What sets us apart is our client-centered approach. We take the time to understand your individual needs, goals, and concerns—so you’re never treated like just another case file. With access to a trusted network of experts—including medical providers, vocational specialists, and financial analysts—we are equipped to develop strong, evidence-based cases tailored to your situation.

We recognize that personal injury cases can be emotionally overwhelming and financially stressful. That’s why we operate on a contingency fee basis: you don’t pay unless we recover compensation for you. We also have multiple office locations throughout New York City, providing you with added convenience.

Most importantly, we are committed to ethical representation and clear communication. From the first consultation to the final resolution, we keep you informed and involved at every step.

If you’re seeking a law firm that brings knowledge, compassion, and dedication to every case, contact The Orlow Firm today. Let us help you pursue the compensation you may be entitled to for your lost wages and lost earning capacity. Call us today at (646) 647-3398.