Loss of Earnings/Diminished Earning Capacity 

Your loss of earnings and diminished earning capacity can be recovered as part of a personal injury case. They are a part of the economic damages you incur because of another party’s intentional torts, negligence, or other wrongdoing. You can seek compensation for economic and non-economic damages by filing an insurance claim or personal injury lawsuit in Maryland.

Defining Loss of Earnings and Diminished Earning Capacity for a Maryland Personal Injury Case

Defining Loss of Earnings and Diminished Earning Capacity for a Maryland Personal Injury Case

Your earnings include all income you lost as a result of your injuries. It represents the wages, salary, and other income you may have received if you had not been injured. 

Examples of income that is included in a loss of earnings claim include:

  • Hourly wages
  • Salaries
  • Tips
  • Freelance income
  • Bonuses
  • Earnings from gig work and independent contract work
  • Commissions
  • Overtime pay
  • Part-time income

In addition to your lost wages and income, you can also include the benefits you would have received had you been working. For example, if you would have earned paid time off, that time may be included in loss of income. Also, if you use sick time or vacation time while recovering from your injuries, you may be able to include that time in your loss of earnings claim.

Our lawyers work with you to gather the information necessary to prove loss of earnings. Evidence includes W2 statements, tax returns, income statements, 1099s, and other proof of income.

In addition to establishing how much income you lost because of the other party’s actions, you must prove that your injuries prevented you from working during your recovery. Therefore, seek medical treatment as soon as possible after your injury or accident.

In addition to documenting your injuries, your doctor documents work restrictions in your medical notes. If necessary, our lawyers consult medical specialists to obtain additional evidence of your inability to work.

Diminished Earning Capacity and Future Lost Wages in a Maryland Personal Injury Case

In addition to lost wages, you can also seek reimbursement for diminished earning capacity and future lost wages. Disabilities and permanent impairments may prevent you from working or restrict the type and amount of work you can perform. If so, you may be entitled to additional compensation for loss of earnings.

We analyze the factors of your case to calculate the value of future loss of income and earning capacity. 

Those factors include:

  • The types of injuries you sustained and the required medical treatment for those injuries
  • The type of disability and impairment you developed because of the injuries
  • Your current age
  • The age at which you expect to retire
  • Your career and the type of work you did before the injury
  • Whether you can perform any work with your disability
  • The outlook for your career and the anticipated rate of inflation
  • The severity of your impairment and disability

Determining the value of future loss of income and diminished earning capacity can be challenging. An experienced Baltimore personal injury lawyer often works with experts to gather opinions establishing the value of future loss of income.

We may work with vocational experts and medical specialists to obtain expert opinions explaining how your impairment prevents or restricts you from working. They explain the type of work you can perform, if any, and any restrictions, such as limited hours, frequent breaks, sitting only, etc.

As the restrictions on your ability to work increase, the value of a diminished earning capacity claim increases. Each claim is different. The value of your claim is based solely on the circumstances and facts of your case.

How Does Maryland’s Contributory Fault Standard Impact a Claim for Loss of Earnings and Diminished Earning Capacity?

Maryland is one of four states and the District of Columbia that uses a contributory negligence standard for personal injury cases. If you are partially to blame for causing your injuries, you are barred from receiving damages. Even if the other party is more at fault than you, contributory fault prevents you from receiving compensation for your damages.

Therefore, it is crucial that you remain cautious when discussing the case with an insurance adjuster or other person representing the insurance company or at-fault party. The statements you make could be intentionally twisted to claim you admitted contributing to the cause of your injuries.

If the insurance company or another party suggests that you could be partially to blame for your injuries, call a Baltimore personal injury lawyer immediately for help.

What Is the Statute of Limitations in Maryland for Loss of Earnings and Diminished Earning Capacity Claims?

The statute of limitations for most personal injury claims in Maryland is three years. Your claim for loss of income is included in the claim for economic damages. Therefore, you have just three years from the date you were injured to file a lawsuit or lose your right to pursue a legal claim.

However, your time to file a lawsuit could be shorter, depending on the factors of your case. Exceptions to the statute of limitations could change the time to file a personal injury lawsuit.

A Baltimore Personal Injury Lawyer Can Help With a Loss of Earnings/Diminished Earning Capacity Claim

Contact a Baltimore personal injury lawyer today at (410) 837-2144 for a free consultation if you were injured in an accident or because of another party’s conduct. An experienced attorney at WGK Personal Injury Lawyers can help you file a claim and seek compensation for your loss of income and all other damages.