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Loss of Earnings and Diminished Earning Capacity in Oregon Personal Injury Cases

A personal injury can greatly affect a victim’s life. One big impact is losing earnings or being unable to earn as much in the future. Losses from physical limits, job changes, or permanent disabilities can lead to lasting money problems.

If someone else’s negligence or wrongdoing injured you, you might deserve compensation. This includes both lost income and future earnings you could have earned. To get full compensation for your losses, you must understand two things: loss of earnings and diminished earning capacity. Knowing how these damages are calculated is key.

What Is Loss of Earnings?

Loss of earnings refers to the income lost due to an injury that prevents you from working. These damages are typically economic in nature, meaning they are easy to calculate because they are based on your actual lost wages.

Examples of Loss of Earnings

If your injury forces you to take time off work, your lost income during that period can be compensated.

Examples of loss of earnings include: 

• Bonuses or overtime: If you would have earned bonuses or overtime had the injury not occurred, you may be entitled to those as well.
• Lost self-employment income: If you are self-employed, you can claim the income you would have earned during the time you were unable to work.

To prove loss of earnings, show your income before the injury. You can use pay stubs, tax returns, or profit and loss statements if you are self-employed.

What Is Diminished Earning Capacity?

Diminished earning capacity covers how your injury affects your ability to earn in the future. Returning to work after an injury might not mean earning the same income as before. This can happen because of lasting limitations. An injury that causes lasting disability, such as loss of mobility, may prevent you from returning to your old job.

For example, if you worked in a tough job like construction but now have a permanent disability, you might not be able to go back to that job. If your injury limits the types of work you can perform, you may need to accept lower-paying jobs or work fewer hours. 

Furthermore, if your injury stops you from finishing your education or training, it can lower your earning potential.

How Diminished Earning Capacity Is Calculated

Diminished earning capacity is more subjective than loss of earnings. 

A variety of factors are considered, such as:

• The nature of the injury: How the injury affects your ability to perform your current job and future work.
• Your pre-injury earning potential: Your typical income, job title, and career progression prior to the injury.
• Expert testimony: Vocational experts or economists can estimate the loss in earning capacity.
• Age and health: Younger people with a longer work life might get more compensation for reduced earning ability.

Diminished capacity is based on future projections. 

How to Prove Loss of Earnings and Diminished Earning Capacity

To prove loss of earnings, you’ll need:

• Pay stubs or tax returns showing your pre-injury income.
• Documentation of missed work due to the injury (doctor’s notes, time-off records, etc.).

On the other hand, diminished earning capacity requires a more detailed analysis, as it’s based on long-term projections. 

To show this, you’ll need:

• Medical evidence showing the extent and permanence of your injury.
• Testimony from vocational experts or career specialists who can speak to the impact of the injury on your future earning potential.
• Economic reports estimating the reduction in earning capacity based on your job, industry, and the nature of your injury.

Proving loss of earnings is relatively straightforward because it involves quantifiable lost income. 

Oregon Laws That Affect Loss of Earnings and Diminished Earning Capacity Claims

In Oregon, personal injury victims have two years from the date of the injury to file a lawsuit for loss of earnings and diminished earning capacity. If you fail to file your claim within the two-year period, you may lose your right to pursue compensation.

For claims related to wrongful death, the statute of limitations is three years from the date of injury.

In addition, Oregon law may reduce your compensation if you contributed to your injuries. 

Because these claims can be complex, it’s important to consult with an attorney immediately after the injury to ensure that all deadlines are met.

Why You Need an Experienced Personal Injury Lawyer

Calculating loss of earnings and diminished earning capacity often involves complex legal and economic factors. Without a skilled personal injury lawyer, you may not receive the full compensation you’re entitled to.

An experienced lawyer can:

• Help gather the necessary evidence to support your claim.
• Work with vocational and economic experts to calculate long-term damages.
• Handle negotiations with the insurance company or represent you in court if necessary.
• Ensure you meet all deadlines and file your claim on time.

We have years of experience helping clients in Portland and throughout Oregon recover the compensation they deserve for both immediate losses and future earning capacity.

Contact an Oregon Personal Injury Attorney to Learn More About Loss of Earnings and Diminished Earning Capacity

If you’ve been injured in an accident and have lost income or your ability to work in the future, you may be entitled to compensation for both loss of earnings and diminished earning capacity. At Tillmann Law Personal Injury Lawyers, we’ll help you gather the evidence, consult with experts, and build a strong case to maximize your recovery.

Contact Tillmann Law Personal Injury Lawyers at (503) 773-3333 to schedule a free consultation and learn more about your legal options.