Loss of Earnings/Diminished Earning Capacity

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Loss of Earnings/Diminished Earning Capacity 


If you were injured in a car accident or other incident, you have the right to seek compensation for the damages you suffered, including your loss of earnings and diminished earning capacity. An experienced car accident lawyer can evaluate your claim and explain the damages you can seek. 

Damages in a Personal Injury Case

The primary goal of a personal injury case is to make an accident victim whole again. This is primarily achieved by awarding them damages against the party responsible for their injuries. In Missouri, the two primary forms of damages awarded in personal injury cases include:

Economic Damages

Lost wages are one type of economic damages, which seek to compensate accident victims for their direct, financial losses. Other examples of economic damages include:

  • Medical bills
  • Rehabilitation expenses
  • Emergency room treatment
  • Therapy costs
  • Medication 
  • Long-term care costs
  • Diminished earning capacity
  • Property damage
  • Out-of-pocket expenses
  • Replacement services

Economic damages account for current and future losses.

Non-Economic Damages

Accident victims can also seek compensation for less tangible losses, such as:

  • Pain and suffering
  • Mental anguish
  • Emotional distress
  • Psychological conditions, such as PTSD, anxiety, or depression
  • Insomnia
  • Permanent disabilities and impairments 
  • Reduced quality of life
  • Loss of consortium

Like with economic damages, accident victims can demand compensation for present and future non-economic damages.

Lost Wages

Your claim for lost earnings can include any financial losses you suffered because you were unable to work due to your injuries. This could include payment for:

  • Lost wages or salaries
  • Lost overtime pay
  • Lost commissions or bonuses
  • Lost tips
  • Lost benefits, including unused vacation time and sick pay

You can also seek compensation for your future lost wages. Your right to recover compensation for lost wages applies whether you work full-time, part-time, seasonally, or as a self-employed person.

Diminished Earning Capacity

Diminished earning capacity refers to the long-term impact your injuries have on your ability to work. If you are unable to work at all, you can seek compensation for your lost earning capacity. 

If you had to switch jobs to a less physical or demanding job and have suffered a decrease in your earning power, you can seek compensation for your reduced earning capacity. 

How to Prove Loss of Earnings Damages

Proving lost wages and diminished earning capacity follow two very different pathways. For lost wages, you can usually gather your pay stubs and compare your earnings before and after the accident to show how much money you lost from being unable to work. 

If you’re an hourly employee, you would multiply the number of hours you missed due to your injuries by your hourly rate. For salaried workers, you can break your annual salary into the amount you receive each day.

If your work is irregular, you may need to use average figures. You can also seek documentation from your employer regarding your time off work, used employment benefits, and other financial losses you experienced related to your job due to your injuries. 

Establishing your diminished earning capacity is often much more difficult. It may be necessary to hire a vocational expert who can compare what you stood to earn before the accident with what your projected earnings are now. This may require a very fact-specific analysis into:

  • Your job
  • The industry you work in
  • Your history of promotions
  • Your job skills
  • Your education
  • Your previous employment 
  • Your historical earnings

A trusted personal injury lawyer can hire experts to help make your case as strong as possible.

Evidence of Loss of Earnings and Diminished Earning Capacity

As the plaintiff in a personal injury case, it’s your responsibility to provide sufficient evidence to prove your case and each aspect of your claim. To prove your damages related to your lost income, you could use evidence such as:

  • Check stubs: Your check stubs show your rate of pay and how many hours you worked/didn’t work.
  • Employer letter: You might be able to ask your employer to prepare a letter detailing your losses.
  • Invoices: Self-employed people may need to rely on a reduction in their invoices to show their lost income. 
  • Missed financial opportunities: You may have evidence of financial opportunities you couldn’t take part in because of your injuries, such as text, email, or social media messages, calendar notations, and similar evidence. 
  • Tax returns: Your personal or business tax returns can help show the difference in your earnings before and after the accident. 
  • Testimony from a vocational expert: An expert witness may be able to testify about projected earnings loss over your lifetime.

The burden of proof in personal injury cases is “by a preponderance of the evidence,” which is roughly a 51% or more likelihood. 

Contact a St. Louis Personal Injury Lawyer Today

If you were injured in an accident and would like to know more about what your lost wages claim might be worth, contact Roach Law Car Accident Lawyers. We can discuss your circumstances, legal rights, and options during a free case review. Our St. Louis personal injury lawyers work on contingency, so we only get paid if we successfully handle your case. Call today at (636) 519-0085.

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About Us

Roach Law was founded in 2003 by attorney Kevin Roach, a leading personal injury lawyer, to protect the rights of accident victims in Missouri. Since that time, our firm has grown to feature a legal team with decades of experience in personal injury law. Our attorneys have recovered hundreds of millions of dollars for injured clients, fulfilling our mission to provide every one of our clients with the individual attention they deserve while tirelessly pursuing excellent results

Areas We Serve

Roach Law Car Accident Lawyers serves injured clients throughout Missouri. We have office locations in St. Louis, Chesterfield, Creve Coeur, and Clayton to better serve accident victims across the state of Missouri.

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