Lost Earnings and Earning Capacity Analysis

Lost earnings and earning capacity analysis involves evaluation of income loss associated with injury, illness, or death. These analyses may include consideration of past earnings, potential future earnings, and changes in work capacity, based on the information available in the case.

Purinton Analytics provides vocational evaluation services and coordinates with qualified economists when economic calculations are required. Vocational findings may be used as inputs for economic analysis addressing past earnings and potential changes in earning capacity over time.

Assessing Lost Earnings

Lost earnings refer to income not earned during a defined period due to injury, disability, or death. This may include wages, salary, and employment-related benefits, where supported by the available documentation.

Evaluation of lost earnings may include:

Review of earnings records such as payroll documentation, tax records, and employment history
Identification of the period of work disruption based on available information
Consideration of partial return-to-work or reduced work activity, when applicable
Use of economic calculations performed by or in coordination with an economist

Economic calculations related to lost earnings are performed by or in coordination with qualified economists using standard economic methods.

Evaluating Loss of Earning Capacity

Loss of earning capacity involves evaluation of potential changes in an individual’s ability to earn income in the future. This analysis may consider the relationship between functional limitations, vocational factors, and potential employment options.

Vocational evaluation may include consideration of:

Education, training, and work history
Skills and prior work experience
Functional limitations reflected in the available records
Potential occupational options consistent with those limitations

These vocational findings may be used as inputs for economic analysis addressing projected earnings over time, as performed by or in coordination with an economist.

Vocational and Economic Considerations

Analysis of lost earnings and earning capacity may involve coordination between vocational findings and economic calculations. Vocational evaluation addresses employability and potential occupational options, while economic analysis applies financial assumptions and methods to estimate earnings over time.

Purinton Analytics provides vocational evaluation services and coordinates with economists so that each component is addressed within its appropriate scope.

Applications

Lost earnings and earning capacity analysis may be relevant in a range of matters, including:

Personal injury and disability cases
Wrongful death matters
Employment-related litigation
Insurance claims involving financial loss

The analysis is limited to the information available and the scope of the evaluation.

Methodology

These analyses are based on review of available records, including employment and earnings documentation, medical information when relevant, and other materials provided. Vocational evaluations are conducted using established practices within the field of vocational rehabilitation.

Economic calculations are performed by or in coordination with qualified economists using standard economic methods. Assumptions used in the analysis, such as work-life expectancy or wage trends, are applied by the economist where appropriate.

All findings are based on the information available at the time of the analysis. If additional information is later provided, the analysis may be subject to revision. Different assumptions or additional information may result in different conclusions.