If you’ve been hurt in a car crash or other serious accident, you’re probably dealing with more than just medical bills. Many of our clients at Crosley Law also face time away from work, smaller paychecks, and worries about whether they’ll ever return to the job they once had.
In a Texas personal injury case, you may be entitled to compensation for your lost income. Ideally, that compensation should include more than just the money you’ve missed so far. You may also have a right to recover for something called “loss of earning capacity”: the long-term impact your injury could have on your ability to work and earn money in the future.
Understanding these two types of compensation—lost wages and loss of earning capacity—can help you protect your rights and make informed decisions about your injury claim.
We will look deeper into what these types of compensation are and how they are calculated. But if you want to talk with one of our attorneys, don’t hesitate to call 210-529-3000 or fill out our online contact form to request a free consultation.
What’s the difference between lost wages and loss of earning capacity?
Even though they sound similar, these are two different categories of damages under Texas law:
- Lost wages: Covers the income you already missed from the time of your injury until your case is resolved
- Loss of earning capacity: Refers to how your injury might affect your ability to earn a living in the future, even after your case is over
What counts as lost wages?
Lost wages are the money you didn’t earn because your injury kept you from working. This includes:
- Missed days, weeks, or months on the job
- Time off for surgeries, doctor’s appointments, or recovery
- Reduced hours or part-time work if you couldn’t return to your full duties
You’ll need solid proof of lost wages to receive compensation. Common documents include:
- Pay stubs or wage statements
- Employer letters confirming your time off and pay rate
- Past tax returns showing your regular income
- Testimony from your employer or HR department
If you’re self-employed, proving lost wages can be more complicated but still possible. You may need:
- Business tax records or profit-and-loss statements
- Client contracts that had to be canceled
- Invoices and billing history
- Help from an accountant or financial expert to explain the impact on your business
In Texas, you don’t need to prove lost wages beyond a shadow of a doubt. You just need to show that it’s more likely than not that your injury caused you to miss work and lose income. That’s why thorough documentation is so important.
What counts as loss of earning capacity?
Loss of earning capacity looks at how your injury may affect future income potential. It’s not just about what you’ve already lost, but what you may never earn because of your injury.
For example:
- A welder with a severe back injury may no longer be able to handle the physical demands of the job
- A young professional with a brain injury may struggle with focus, memory, or decision-making
- A truck driver with vision problems may lose their commercial license
In these cases, the injured person may be able to work in some capacity but not in the same job, at the same pay, or with the same opportunities for advancement. The law allows you to be compensated for this future loss.
How do you prove loss of earning capacity?
Loss of earning capacity is harder to prove than past lost wages because the future is always uncertain. That’s why we often rely on experts to explain what your earning potential would have been if not for the injury, and how your condition has changed those possibilities.
Factors that can influence a loss of earning capacity claim include:
- Your age, education, and work history
- The type of job you had before the injury
- The severity and permanence of your injury
- Medical testimony about your limitations
- Expert opinions about job market conditions and future job prospects
In many cases, we work with:
- Doctors who explain your diagnosis and long-term prognosis
- Vocational experts who assess your ability to work and perform specific tasks
- Economists who calculate how much income you’re likely to lose over your lifetime
- Life care planners who identify the care and accommodations you’ll need going forward
Together, these experts help create a clear picture of your financial future and why full compensation is needed to support you.
Why the distinction between lost wages and loss of earning capacity matters
Lost wages and loss of earning capacity are both about income, but they’re not interchangeable. Lost wages are based on actual numbers. Loss of earning capacity is based on your future, your potential, and how your life has changed.
This distinction matters in settlement negotiations and at trial. Insurance companies may agree to reimburse some lost wages but push back hard against future earning capacity claims—especially since they can involve large amounts of money.
That’s why having an attorney who understands the law, has experience working with the right experts, and knows how to explain your situation clearly to a jury is so important.
What will a jury look at?
If your case goes to trial, it will ultimately be up to a jury to decide how much compensation you should receive for both past and future lost income. They’ll review the evidence your legal team presents, including:
- Medical records
- Employer statements
- Pay stubs and tax returns
- Testimony from experts and witnesses
- Your own story about how the injury has affected your ability to work
The stronger and more organized your evidence is, the better your chances of getting full and fair compensation.
RELATED: What every personal injury victim should know about non-economic damages
How Crosley Law builds a strong case for lost income
At Crosley Law, we take lost wages and earning capacity seriously. We know how deeply financial uncertainty can affect your recovery.
Our team works with skilled medical providers, vocational consultants, and financial experts to build strong, detailed claims. We document everything carefully and push back against insurance company tactics designed to minimize your losses.
Whether you’ve missed a few weeks of work or suffered an injury that changed your career forever, we’ll fight to make sure your compensation reflects the full extent of what you’ve lost.
RELATED: Recovering medical expenses in your Texas personal injury case: what you need to know
If you’ve lost income after an injury, let’s talk
If you’ve been injured in an accident and are worried about your ability to work or provide for your family, don’t wait to get the legal help you need.
Our team at Crosley Law understands the financial pressures you’re facing. We’re ready to help you build a case for every dollar you’re owed, both today and in the future.
Call us at 210-529-3000 or fill out our quick online form to schedule a free consultation.
You’ve worked hard to build your life. If someone else’s negligence has put that at risk, we’ll work just as hard to protect your future.
The content provided here is for informational purposes only and should not be construed as legal advice on any subject.
