Understanding Loss of Earning Capacity

When someone is injured due to another party’s negligence in Connecticut, the resulting financial damage often extends far beyond immediate medical bills. One often overlooked but significant loss is diminished earning capacity—the long-term reduction in a person’s ability to earn a living. Unlike lost wages, which refer to actual income missed during recovery, loss of earning capacity accounts for future earnings the injured party can no longer earn due to their injury.

This type of loss can be temporary or permanent and is typically part of the economic damages in a personal injury lawsuit. Establishing its value, however, is complex and must be carefully calculated based on a mix of evidence, expert testimony, and projected career potential.

How Connecticut Law Treats Loss of Earning Capacity

Connecticut courts recognize loss of earning capacity as a compensable element in personal injury claims. Plaintiffs do not need to prove they lost a specific job or income—only that their ability to earn income has been negatively impacted.

The Connecticut Supreme Court has clarified that the loss is based not just on past income, but on what the injured person could have earned over a lifetime. This opens the door for individuals such as students, unemployed persons, or self-employed workers to make valid claims even if they weren’t earning a consistent income at the time of injury.

Key Factors That Influence the Claim

Several variables determine how much compensation you can seek for loss of earning capacity:

• Severity and permanence of the injury: A permanent disability will result in a much higher loss of earning potential than a temporary injury.
• Age of the plaintiff: Younger individuals may have decades of work ahead of them, increasing the long-term impact.
• Education and training: Courts assess the plaintiff’s career trajectory, including current qualifications and potential for future promotions.
• Employment history and career path: Evidence such as pay stubs, tax returns, and employer evaluations help establish earning trends.
• Medical and vocational expert testimony: These professionals evaluate whether the person can return to their previous job, switch careers, or is fully disabled.
• Labor market conditions: The availability of alternative work that accommodates the injury can affect the projected income loss.

Lost Wages vs. Loss of Earning Capacity

It’s important to distinguish between these two concepts:

• Lost wages are the actual earnings missed due to the injury—from the time of the accident until trial or settlement.
• Loss of earning capacity is the future impact—what the injured person would have earned in their lifetime had the injury not occurred.

For example, if a construction worker suffers a spinal injury that prevents them from returning to physical labor, even if they later find a lower-paying desk job, the difference in earnings can be claimed under loss of earning capacity.

Proving Your Claim in Connecticut

To succeed in a claim for loss of earning capacity, a plaintiff must build a strong evidentiary case. This often requires collaboration with financial experts, economists, and physicians.

Steps involved in proving your claim typically include:

• Obtaining medical evaluations that outline the physical or cognitive limitations caused by the injury
• Vocational assessments to determine which jobs, if any, the person can still perform
• Expert economic analysis to quantify the gap between pre-injury and post-injury earning potential
• Documentary evidence like tax returns, W-2s, or business financials to show past earnings

Courts in Connecticut allow for the use of both statistical models and individualized assessments to estimate the future earnings loss, adjusting for inflation, life expectancy, and career growth patterns.

Connecticut Case Examples and Precedents

Connecticut courts have awarded damages for loss of earning capacity in a range of personal injury cases, from car accidents to medical malpractice and workplace injuries.

For instance, in Faulkner v. United Technologies Corp., the court allowed a significant award based on the plaintiff’s inability to return to his high-paying manufacturing job due to a back injury. The court relied on both vocational expert testimony and projections based on prior income and likely future raises.

Each case hinges on the specific facts, but consistent themes include the need to prove a real and measurable reduction in work capability—even if the plaintiff has not lost their job entirely.

Calculating the Value: No Fixed Formula

There’s no standardized formula under Connecticut law for calculating loss of earning capacity, which makes expert guidance essential. However, economists typically factor in:

• Anticipated career duration
• Historical income growth rates
• Fringe benefits (health insurance, retirement contributions)
• Reduced work-life expectancy due to the injury

A financial expert will discount future earnings to present-day value, ensuring the amount awarded reflects today’s dollars rather than inflated future sums.

Limits and Considerations in Connecticut Claims

Connecticut does not cap economic damages like loss of earning capacity, meaning there is no statutory maximum. However, the amount must be reasonable and supported by credible evidence. Insurance policy limits and comparative negligence laws may still affect how much compensation is ultimately recoverable.

Connecticut’s modified comparative fault rule means if the injured party is found to be 51% or more at fault for the incident, they cannot recover damages. If they are less than 51% at fault, the award will be reduced proportionally.

Why Legal Guidance is Essential

Because loss of earning capacity claims involve predicting future events, insurance companies often push back with aggressive challenges. They may argue that the plaintiff can still work in some capacity or that economic projections are speculative. An experienced personal injury attorney can help counter these arguments with well-supported evidence and ensure your case meets the legal threshold for compensation.

Conclusion

Loss of earning capacity can have life-altering financial consequences, particularly when injuries limit a person’s ability to continue their chosen profession or advance in their career. In Connecticut, the law provides a pathway to recover this form of economic loss—but only if the claim is backed by solid evidence, expert insight, and a compelling argument. If you’ve suffered a serious injury, consulting with a personal injury lawyer is a smart first step toward protecting your future earning power.

Need Legal Help? Brandon J. Broderick, Attorney at Law is One Phone Call Away

Navigating Connecticut personal injury claims can be challenging. Fortunately, you don't need to do it alone. The experienced personal injury lawyers at Brandon J. Broderick, Attorney at Law, are available 24/7 to help you understand your legal options, gather necessary evidence, and build a strong case to secure the settlement you deserve.

Contact us now for a free legal review.