Calculating Compensation for Loss of Future Earnings
Many people face financial struggles after sustaining injuries in an accident. Some injuries prevent a person from earning their regular income or returning to their job entirely. That can significantly impact finances, especially if the injury causes permanent damage, impairment, or disability. Calculating compensation for loss of future earnings is essential to ensuring you receive fair compensation.
Medical care is often expensive. Paying for hospitalization, physical therapy, prescriptions, and other types of treatment is challenging for many. Some face debt because they can’t afford to pay these bills. Additionally, when there is a loss of income, people can’t pay daily living expenses, such as rent and groceries.
Knowing your injury might lead to long-term medical issues is stressful. If you’re worried about whether you’ll be able to pay your bills despite your lack of income, you should consider pursuing legal action. You could hold the person who caused your injury responsible and seek
compensation.
Common Types of Future Earnings
“Loss of future earnings” refers to the money someone won’t be able to earn in the coming weeks, months, or years due to an injury. When another person or a company is at fault for an accident, and you get hurt, you are entitled to compensation from them. Part of the monetary award you receive could compensate for your lost future earnings if your injury prevents you from returning to work or making the same money you made before the accident.
Common forms of future earnings include:
- Benefits
- Commissions
- Bonuses
- Salary or wage
- Paid time off
- Pay raises
- Missed employment opportunities
- Contributions to a 401(k) or another retirement plan
How to Calculate a Loss of Future Earnings
You can calculate lost future earnings by reviewing past income. However, determining the correct value isn’t as straightforward as you might think. Since your future income hasn’t happened yet, calculating an appropriate number is complicated.
You must consider your past earnings and other factors to determine the appropriate amount of compensation to cover your lost future earnings. The most common factors used in calculating a loss of future income include:
- Physical or mental impairments that interfere with your job duties
- Your age, education, experience, and skills that allow you to seek employment elsewhere if necessary
- Your doctor’s evaluation of your medical condition and whether you will recover or suffer permanent damage
- Bonuses earned in the past
- Average income or wage made before sustaining the injury
- Current income earned since the accident
- The average number of sick and vacation days provided by your employer
- Pay raises typically received by people in your position
- The likelihood of a promotion or other professional advancement
You must gather all relevant documentation to prove you likely won’t earn the same income as before the accident.
How to Prove a Loss of Future Earnings
The evidence you need to show you should receive compensation for future lost earnings will depend on the circumstances of your case. Some evidence works better than others. The most common evidence used in loss of future earnings claims includes:
- Prior tax returns
- Statements from coworkers regarding your professional achievements and goals
- Job description from your employer with a list of your responsibilities
- Pay stubs
- Documentation of the hours or days you could not work due to your injury
- Statements from medical providers indicating how the injury affects your physical or mental abilities
- Affidavit from a vocational expert discussing the severity of the injury, type of treatment necessary to heal or improve, and whether recovery is possible
Having legal representation can benefit the outcome of your
personal injury case. Proving a loss of future earnings is complex and requires extensive knowledge and resources. You shouldn’t attempt to pursue compensation without an experienced attorney’s help.
Hach & Rose, LLP has represented accident victims in New York for more than two decades. We have a proven
track record of success in
personal injury cases. We know what it takes to hold people and companies liable for their misconduct and recover compensation for our clients.
Our
New York personal injury lawyers take cases on contingency. We understand the financial consequences many clients face after an accident. You won't have upfront expenses when you hire us. We won't expect payment for our legal fees unless we recover compensation for you.
We have 24/7 availability, so you can reach us whenever you need us. We understand the importance of providing ongoing communication to our clients. You can contact us any time of day to discuss your case. We will
treat you as a priority until the end.
If you sustained injuries in an accident due to someone’s negligent or careless actions, call
Hach & Rose, LLP for your
free consultation at
212-779-0057 today.