A road accident can happen out of nowhere. You may be on your way home from work after a hectic day, and within seconds, you could be looking at flashing lights, shattered pieces of glass, and blood coming out of your body. You could be left with injuries that scar you for life and prevent you from living the way you did.

One thing that gets affected when you acquire severe injuries is your job. It may become impossible for you to return to work, either permanently or temporarily. Whichever one it may be, it is essential that you seek a car crash lawyer Atlanta to help you fight for your rights.

What Are Lost Wages?

Lost wages or lost income refer to the damages incurred when the victim is unable to go to work while they are recovering from the accident. They make up for the amount of money the victim loses while they stay in the hospital, undergoing treatments.

Lost wages do not only mean a monthly salary and can include various things?

  • Wages, regardless of whether they are measured by the hour or not.
  • Employment benefits
  • Loss of overtime pay
  • Tips
  • Compensation
  • Sick leave 
  • Vacation pay
  • Overtime pay
  • Business income 
  • Bonuses

The court looks at how many days of work the victim has missed and calculates an amount accordingly. The plaintiff is usually required to provide pay stubs, a letter from the employer, tax returns, and other forms of documentation also.

What Is Lost Earning Capacity?

Lost earning capacity refers to the victim’s loss of working ability in the same capacity as they did before the accident. This means that the victim has acquired life-changing injuries that have permanently prevented them from working their old job or any job at all. Some injuries include spinal cord injuries, amputation, or permanent brain damage also.

Lost earning capacity damage is the difference between the victim’s income. At their old job and how much they are earning now. For example, suppose the employer has agreed to keep the victim for part-time work instead of full-time due to amputation. Here, the victim loses the money they used to get from working full-time. Therefore, the responsible party owes them this loss.

If the damage makes it impossible for the victim to work at all. They may obtain their entire old salary as compensation. The victim could also be entitled to 401(k) benefits, retirement options, and stock benefits also.

Lost wages and lost earning capacity are two different things. And to obtain them, you will require different types of evidence. If you are confused about how you can prove the other party’s fault, you can always consult an attorney also.

It is important to note that the loss of income is different from the loss of ability to earn. Low income refers to the past earnings of a person who has already lost as a result of an injury. Earnings potential, in turn, refers to the loss of future income that a person has not yet achieved.