What is lost earning capacity?

Lost earning capacity refers to your reduced ability to earn money in the future due to your injuries, separate from wages you've already lost. If your injuries prevent you from returning to your previous job, limit the hours you can work, or force you to take a lower-paying position, you may be entitled to compensation for this diminished earning potential. Calculating lost earning capacity often involves vocational experts and economists who analyze your work history, education, skills, and the labor market. For catastrophic injuries, lost earning capacity can be the single largest damage category. A young professional rendered quadriplegic loses decades of earning potential. A skilled tradesperson who loses a limb may never return to their profession. A traumatic brain injury victim may be unable to work at all. These losses, calculated over a remaining work life expectancy, can reach into the millions. This can be one of the largest components of damages in cases involving permanent disability or career-ending injuries.