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Loss of Earnings/Diminished Earning Capacity

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Loss of Earnings/Diminished Earning Capacity

Accidents can leave you with more than just injuries. Many personal injury victims in Georgia also face financial challenges when injuries affect their ability to work. You may be entitled to compensation for loss of earnings and/or diminished earning capacity if your injuries after an accident have affected your income.

Understanding how these damages may be awarded is important for obtaining fair compensation after an accident. 

What Is Loss of Earnings Damages in Georgia?

What Is Loss of Earnings Damages in Georgia?

Loss of earnings damages are intended to compensate you for income lost due to your inability to work after an accident. They typically cover your actual lost wages from the date of your injury until you can return to work or fully recover. 

This may include the following:

  • Base salary
  • Hourly wages
  • Overtime
  • Bonuses
  • Other earnings

You must prove that your injury directly caused you to miss work and that you would have reasonably received the lost earnings had you not been injured. This can be demonstrated through medical records, pay stubs, and tax records that show your earnings from before and after the accident.

What Are Diminished Earning Capacity Damages in Georgia?

Diminished earning capacity damages are intended to compensate you for the long-term impact of an injury on your ability to earn future income. Permanent or long-lasting injuries will typically affect your capacity to perform your duties or limit future employment opportunities.

Diminished earning capacity damages may be awarded when you cannot return to the same level of employment as you had before your accident. These damages are often more difficult to prove and may require expert testimony, including vocational experts who can assess your ability to work and earn a living post-injury.

How Do You Calculate Loss of Earnings/Diminished Earning Capacity in Georgia?

Calculating loss of earning damages is relatively straightforward. Your personal injury lawyer will calculate the income you would have earned while you could not work, which includes base wages, commissions, bonuses, and other income. This is typically calculated by multiplying the days or hours of work you have missed by your hourly rate.

Diminished earning capacity damages are more complex. Calculating these damages requires looking into the future and assessing how your injury will affect your ability to work and earn future income. 

Several factors may be evaluated, including your:

  • Age
  • Occupation
  • Education
  • Skillset
  • Experience
  • The severity of your injury
  • Length of your recovery
  • Permanency of your injury

A Georgia personal injury lawyer will often retain expert witnesses to estimate how much income you may have lost due to your reduced ability to work. They can predict  

How Do You Prove Loss of Earnings/Diminished Earning Capacity Damages in Georgia?

You will need to prove the income you lost due to your injury to receive damages for loss of earnings or diminished earning capacity. 

Proving loss of earnings/diminished earning capacity can require you to provide:

  • Medical records showing the nature and extent of your injury, including how long it has kept you out of work
  • Employment records to verify the time you missed from work and your typical earnings
  • Pay stubs or tax returns showing your earnings before the accident

Georgia law requires that you demonstrate your damages with reasonable certainty. This means that you need clear evidence supporting your personal injury claim. A Georgia personal injury lawyer can evaluate your case and identify the strongest forms of evidence. 

What If I’m Partly Responsible for My Accident?

Georgia’s modified comparative negligence doctrine applies if you are partly responsible for an accident. It states that even if you are partly at fault for your accident, you can still recover damages, but only if you were less than 50 percent responsible. However, your compensation will be reduced by your share of fault for the accident.

This can directly impact the damages you may be awarded for loss of earnings or diminished earning capacity. For example, if you are found to be 20 percent at fault for your accident and your loss of earning damages amount to $20,000, you may receive only $16,000 in compensation. A Georgia personal injury lawyer can help defend you against allegations of comparative negligence.

How Long Do I Have To Bring a Lost Wage Claim?

The time limit to bring a lost wage claim generally falls under Georgia’s statute of limitations for personal injury lawsuits, which is two years from the date of your accident. This means you typically have two years to file a claim after an injury for compensation related to lost wages, diminished earning capacity, or other damages resulting from your injury. 

It is crucial to file your claim within this period because if the statute of limitations expires, you may lose your right to seek compensation for lost wages or other damages.

Facing Lost Wages After an Accident? Consult a Georgia Personal Injury Lawyer

If you are dealing with lost wages or diminished earnings after a personal injury in Georgia, a personal injury lawyer from The King Firm Car Accident and Personal Injury Lawyers may be able to help. The path to compensation may feel overwhelming, but an experienced attorney can evaluate your case and calculate the damages you may be entitled to. Contact us today at (229) 386-1376 to schedule a free consultation to discuss whether you have a claim for loss of earnings and diminished earning capacity.

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