Spinal cord injuries often end careers or dramatically reduce earning potential. Lost wages and earning capacity can be the largest damage component, particularly for young, high-earning plaintiffs.

Past Lost Wages

Calculate all income lost from injury date to present:

Components of Past Lost Wages

  • Base salary or hourly wages—documented through pay stubs, W-2s
  • Overtime—historical pattern of overtime worked
  • Bonuses—regular and performance bonuses
  • Commissions—for sales-based positions
  • Self-employment income—documented through tax returns
  • Benefits value—health insurance, retirement contributions

Documentation Required

  • Pay stubs from before injury
  • Tax returns (W-2s, 1099s, Schedule C)
  • Employment contracts showing salary
  • Documentation of bonus structures
  • Employer statements on benefits value

Future Lost Earning Capacity

Lost earning capacity—not just lost wages—is compensable. This measures the difference between what you would have earned and what you can now earn.

Factors in Earning Capacity Analysis

Pre-Injury Earning Trajectory

  • Current earnings at time of injury
  • Expected raises and promotions
  • Industry salary trends
  • Education and skill development trajectory
  • Career advancement potential

Work-Life Expectancy

  • Years remaining until expected retirement
  • Statistical work-life tables by age and education
  • Industry-specific retirement patterns

Post-Injury Earning Capacity

  • Physical limitations on work
  • Cognitive effects if present
  • Need for medical appointments and treatment
  • Fatigue and endurance limitations
  • Jobs still accessible with limitations

Employment Impact by Injury Level

Quadriplegia

Most quadriplegics cannot return to previous employment:

  • High quadriplegia (C1-C4)—employment extremely limited
  • Mid-level quadriplegia (C5-C6)—some desk work possible with accommodations
  • Low quadriplegia (C7-C8)—more employment options but still significantly limited

Many quadriplegics never return to competitive employment.

Paraplegia

Paraplegics have better employment prospects but still face limitations:

  • Physical labor jobs typically impossible
  • Sedentary and office work often possible
  • May require accommodations and modifications
  • May have reduced hours due to medical needs

Expert Witnesses for Economic Damages

Vocational Expert

A vocational rehabilitation expert assesses:

  • Jobs you can no longer perform
  • Jobs you may still be able to perform
  • Wages for accessible jobs
  • Need for retraining or education
  • Labor market analysis

Economist

An economist calculates the financial impact:

  • Pre-injury expected earnings—projected career earnings without injury
  • Post-injury expected earnings—what you can now earn
  • Present value calculation—reducing future losses to current value
  • Benefits valuation—lost health insurance, retirement

Present Value Calculation

Future earnings must be converted to present value—the current sum that, invested appropriately, would generate those future amounts.

Factors Considered

  • Discount rate—expected return on conservative investments
  • Inflation—expected wage growth
  • Tax implications—may need to calculate after-tax earnings

Net discount rate method combines inflation and discount rate into a single factor, typically 1-3%.

Calculating Lost Earning Capacity

Example: 30-Year-Old Professional

  • Pre-injury salary: $80,000/year
  • Expected growth to $150,000 by retirement
  • 35 years of work-life expectancy remaining
  • Post-injury capacity: unable to work
  • Total lost earning capacity: $3-5+ million (present value)

Example: 45-Year-Old Manual Laborer

  • Pre-injury wages: $50,000/year
  • 20 years remaining work life
  • Post-injury capacity: $20,000/year in sedentary work
  • Lost earning capacity: $400,000-600,000 (present value)

Fringe Benefits

Lost benefits add significant value:

  • Health insurance—employer contribution, typically $8,000-20,000/year
  • Retirement contributions—401(k) match, pension accrual
  • Life and disability insurance—employer-paid premiums
  • Paid time off—vacation, sick leave value

Benefits typically add 20-30% to base compensation value.

Special Considerations

Young Plaintiffs

Children and young adults present challenges:

  • No established earning history
  • Must project career based on aptitude, family background, education
  • Long work-life expectancy magnifies any earnings projection

High Earners

Executives and professionals may have:

  • Complex compensation structures
  • Stock options and equity
  • Significant bonus potential
  • Very high earning capacity losses

Conclusion

Lost earning capacity can total millions of dollars over a lifetime. Proper documentation and expert analysis are essential to ensure your settlement reflects the true economic impact of your spinal cord injury. Vocational and economic experts are critical to proving these damages.