Every traumatic brain injury (TBI) looks different. Some are severe, taking months or years to return to some normalcy. Others resolve quickly, within a few weeks or so. There are also TBI cases that cause lifelong changes in quality of life.
In personal injury cases involving TBI and bike crashes, severity of a TBI can impact lots of variables about the case, including loss of earning capacity. What does that mean for the cyclist who was injured? A lot, potentially.
Loss of earning capacity, simply put, is the reduction in ability for one to earn wages. However, even with a simple definition, there are many nuances that come with calculating the amount you deserve after a crash.
Under California law, you’re able to recover damages for loss of income and earning potential when somebody in the wrong has caused your injury. If you’ve been hurt in a cycling crash, having an experienced legal staff on your side can help, especially when your earning capacity is at stake. Bay Area Bicycle Law only works in bicycle-related legal matters, so you know you’re getting the most informed expertise.
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Calculating loss of earning capacity
What would your life look like if you had not been hurt in a bike crash? Rightfully, it’s a big question, and also the foundation of calculating the loss of earning capacity after a crash.
The amount of money that may be awarded is based on a variety of factors and can include the following measures (and more in some cases):
- Age
- Health prior to the crash, including life expectancy
- How abilities have been limited because of the crash
- When/if the person can eventually return to work
- Work history and past earnings, including likelihood of promotion and company advancement
- Work ethic
- Education and career goals
Lost earnings are easier to prove — how much time you were absent from work and what pay did you miss out on, for example — but loss of earning capacity looks to the future, takes into account more details, and asks the client what could have been if the crash hadn’t happened.
In these cases, proving loss of earning capacity may require healthcare professionals to testify about the injury and what it means for physical, cognitive, and behavioral health, especially long term. Other expert witnesses, such as economic analysts, may also be important in determining the exact loss.
Determining a final number may sound daunting. However, it can be critical to your future and livelihood to establish loss of earning capacity. Bicycle crashes can be devastating, and when recovery is slow or an injury lingers for years or causes changes to your quality of life for a long period of time, sometimes forever, it’s important to find a way to help make up for that loss.
Loss of earning capacity versus future wage loss
There can be much confusion over what loss of earning capacity means in relation to future lost earnings, which is separate and defined under the California Civil Code. “Damages may be awarded, in a judicial proceeding, for detriment resulting after the commencement thereof, or certain to result in the future,” the code says of future lost earnings.
The difference between these two is that future lost earnings represents reasonable compensation loss in a particular job or industry. If you were an electrician prior to the crash, your future wage loss would be based on that of an electrician in your area.
While an important piece of recoverable damages, future wage loss doesn’t always represent the whole picture of what your earnings are missing out on because of the crash and TBI.
Without the diminished focus or mental health challenges that came from the bike crash, would you have sought additional credentials, certification, or education? This is the sort of question that loss of earning capacity aims to address.
Long term TBI impacts
TBIs are some of the most complex injuries that can result from a bicycle crash. Concussions, considered “minor” in the world of brain injuries, can still require long periods of recovery and symptoms may persist.
These long term impacts that can affect your career and earning potential include:
- Memory issues
- Trouble with focus or paying attention, which can make many tasks difficult
- Dizziness
- Headaches
- Behavioral changes, such as increased anxiety, depression, and mood swings
- Fatigue
- Balance issues
Often, these symptoms can have an outsized effect on work, regardless of the job.
Special cases and circumstances
Because not every injury is the same and not every life journey is the same, there’s a lot to consider when calculating loss of earning capacity. Even if you’re young and haven’t begun your career or you’ve retired from working, you may still have a strong case.
Retirement: Lost earning capacity relies partially on retirement age, so what if you’ve already finished your career? It depends. Many people in retirement take on part time jobs or contract work. That can play a role in calculations. If you’ve taken an early retirement due to the injuries, that may also be an important factor. It’s best to talk with a legal team to determine the path for securing your financial future, even in retirement, while you’re dealing with the lingering symptoms of a TBI.
Children and young adults: There’s a lot to consider for young people who encounter a TBI that affects their earning capacity, especially when they haven’t even begun their career. Understanding their hopes and dreams for their future will be an important part of piecing this picture together. Capabilities and plans for the future prior to the crash will be critical in these cases.
Beyond age and employment status, there’s a lot to consider after being diagnosed with a TBI after a bicycle crash. In many ways these injuries can be life-changing, not just because they alter your earning capacity and financial stability, but because they can also affect your family, your long term health, and quality of life.