When someone is seriously injured in an accident, the financial consequences often go far beyond immediate medical bills. One of the most impactful — and often overlooked — losses is the injured person’s future ability to earn a living. In Texas personal injury law, this is known as loss of earning capacity, and it can make up a significant portion of your total compensation.
Unlike lost wages, which cover income you’ve already missed, loss of earning capacity looks ahead — estimating how your injury will affect your future career, income, and financial security.
Loss of Earnings vs. Loss of Earning Capacity
It’s important to understand the difference between two separate types of damages:
- Lost wages: The income you missed between the time of your injury and your recovery (past earnings).
- Loss of earning capacity: The reduction in your ability to earn income in the future due to long-term or permanent effects of your injury.
Even if you return to work, you may not be able to work in the same field, for the same hours, or at the same earning level — which is where loss of earning capacity becomes relevant.
How Loss of Earning Capacity Is Calculated
Several factors go into determining the value of a loss of earning capacity claim in Texas:
- Your age at the time of injury
- Occupation and skill level
- Earnings history and career path
- Extent and permanency of the injury
- Physical or mental limitations caused by the injury
- Ability to retrain or switch careers
Economic and vocational experts are often brought in to evaluate these elements and provide a projection of what you could have earned — versus what you’re now expected to earn, post-injury.
Common Injuries That Affect Earning Capacity
Loss of earning capacity claims are most often tied to injuries that result in:
- Chronic pain or limited mobility
- Paralysis or amputation
- Traumatic brain injury (TBI)
- PTSD or cognitive impairment
- Loss of vision, hearing, or speech
- Neurological disorders from head or spinal trauma
Even a less visible injury — such as nerve damage or post-concussion syndrome — can impair job performance or prevent return to a former career.
Evidence Needed to Prove Loss of Earning Capacity
To support this type of claim, your personal injury attorney may present:
- Medical records showing permanent impairments
- Testimony from doctors or vocational experts
- Work history, tax returns, and pay stubs
- Documentation of missed promotions or career changes
- Job descriptions and physical requirements
- Evidence of retraining or inability to retrain
These documents help demonstrate how your injury has reduced your long-term value in the workforce — and what that loss will cost you financially.
Why This Matters in a Texas Personal Injury Claim
Loss of earning capacity can be one of the largest components of a personal injury settlement or jury award, especially for younger workers, skilled professionals, or self-employed individuals. Even if you’re still working in some capacity, the difference in earning potential adds up — sometimes over decades.
Failing to account for this loss can leave you under-compensated for the true financial impact of your injury.
Talk to Spagnoletti Law Firm About Your Financial Future After an Injury
If your injury has affected your ability to work or advance in your career, don’t assume insurance will offer fair compensation. These damages are complex, and proving them requires strong evidence and experienced legal strategy.
Spagnoletti Law Firm helps injured individuals across Texas pursue full compensation — including claims for loss of earning capacity. We’ll work with experts to value your case accurately and fight for the future you deserve.
📞 Call 713-804-9306 for a free consultation with a Texas personal injury attorney. No fees unless compensation is recovered.