Loss of Earnings and Diminished Earning Capacity

If you were injured in an accident in Baton Rouge, you may be entitled to more than just medical bills and property repairs. Serious injuries can affect your ability to work and earn a living. Under Louisiana law, accident victims can recover damages for loss of earnings and diminished earning capacity in personal injury claims.

Understanding these types of damages and how they are proven is key to getting the full compensation you deserve.

Table of Contents

What Is Loss of Earnings?

Loss of earnings, also called lost wages, refers to the income you lose because your injury prevents you from working.

This includes:

Missed hourly wages or salary during recovery
Lost overtime or shift differentials
Missed tips, commissions, or bonuses if documented

For example, if you were out of work for six weeks after surgery, you can claim the income you would have earned in that time. Lost wages cover income missed from the date of the accident until you return to work.

What Is Diminished Earning Capacity?

Diminished earning capacity, or loss of future earnings, is different. It refers to your reduced ability to earn income in the future because of a permanent injury or disability.

This damage considers how your injuries limit your career options, income potential, or ability to advance in your field.

For example:

A construction worker who can no longer do heavy lifting or manual labor
An office worker who develops chronic back pain and can no longer sit for long periods
A restaurant server with permanent leg injuries limiting standing and walking

Diminished earning capacity damages are available even if you were unemployed at the time of the accident, as they focus on your future ability to earn based on your education, skills, and expected career path.

How Is Loss of Earnings Proven?

To recover lost wages, you need to show:

Your regular pay rate (pay stubs, W-2 forms, or tax returns)
Time missed from work (employer verification or timesheets)
Medical records confirming your injury prevented you from working

If you are self-employed, you can use invoices, contracts, and prior tax returns to show your historical income.

How Is Diminished Earning Capacity Calculated?

Calculating diminished earning capacity is more complex.

It involves estimating:

What you would have earned if the injury had not happened.
What you are able to earn now with your limitations.

Factors considered include:

Age and life expectancy
Education, training, and skills
Work history and career trajectory before the injury
Severity and permanence of your disability
Economic trends and local job market conditions

In many cases, attorneys work with vocational experts to assess your ability to work in the future and economists to project the financial impact over your expected working life.

What Evidence Supports These Claims?

Strong evidence is needed to prove these damages, including:

Pay stubs, tax returns, or direct deposit records showing past earnings
Employer letters verifying job duties, hours, and missed work
Medical opinions describing physical or mental limitations
Vocational assessments outlining job restrictions and alternate employment options
Economic analysis estimating lost income over your career

Detailed records and expert reports strengthen your case and can increase your settlement value.

How Does Comparative Fault Affect These Damages?

Louisiana follows a pure comparative fault system. This means if you are partially at fault for the accident, your damages are reduced by your percentage of fault.

For example, if your total damages are $100,000 for lost income and you are 25% at fault, your

recovery is reduced to $75,000. Even if you are mostly at fault, you can still recover a reduced amount.

Are Loss of Earnings and Diminished Earning Capacity the Same as Pain and Suffering?

No. Loss of earnings and diminished earning capacity are economic damages because they have clear dollar values.

Pain and suffering are non-economic damages, compensating you for emotional distress, physical pain, and changes to your quality of life. Both types of damages are recoverable in Louisiana personal injury claims.

How Long Do I Have to File a Claim for These Damages?

Louisiana’s statute of limitations for personal injury claims is two years from the date of the accident. If you do not file within this time, you may lose your right to recover any damages, including lost income or future earnings.

Why Should You Work With a Lawyer for These Claims?

Calculating and proving loss of earnings and diminished earning capacity requires:

Knowledge of Louisiana law
Access to medical, vocational, and economic experts
Experience negotiating with insurance companies that often undervalue these damages

An experienced lawyer can gather and present evidence to support your full financial losses and fight for maximum compensation.

Contact the Baton Rouge Personal Injury Lawyers at Mansfield Melancon Car Accident and Personal Injury Lawyers for Help Today

If your injuries have affected your ability to work now or in the future, Mansfield Melancon Car Accident and Personal Injury Lawyers can help. With over 50 years of combined experience and tens of millions recovered for clients throughout Louisiana, our team knows how to build strong claims for loss of earnings and diminished earning capacity.