Guide to Claiming for Lost Earning Capacity in New York

It is estimated that nearly two-thirds of all injury victims experience some form of financial loss due to their injury. This can be due to lost wages, medical expenses, or reduced earning capacity. When an individual suffers a serious injury, it is important to understand all the potential forms of compensation they may be entitled to, including those related to lost earning capacity. In this guide, we will discuss what lost earning capacity is and how it works in the state of New York.

If you reside in Brooklyn and have lost earning capacity, learn more from this personal injury law firm on how you could be entitled to a settlement. Typically, these processes are long and tedious. It also requires a specialized understanding of the law that varies between states.

What Is Lost Earning Capacity? 

Lost earning capacity refers to the reduced ability of an individual to earn a salary after sustaining an injury. This could also refer to the inability of a person with physical disabilities or chronic pain conditions to work at all. The calculation for lost earnings typically includes current and future losses based on age, occupation, skill level, and educational background prior to the accident or injury.

How Is Lost Earning Capacity Calculated in New York? 

The amount of lost wages in New York depends on several factors, including the individual’s income, the nature of the injury or illness, and the duration of the disability. The state workers’ compensation system provides benefits for lost wages to employees injured or ill due to their job.

Under NY’s workers’ compensation system, temporary disability benefits are typically calculated as two-thirds (66.66%) of the employee’s average weekly wage, subject to certain maximum and minimum limits. As of the cutoff in September 2021, the maximum weekly benefit for temporary disability in New York was $966.78, and the minimum was $250.

It’s important to note that these figures are subject to change over time, and it’s advisable to consult the latest information from the New York State Workers’ Compensation Board or seek legal advice to obtain accurate and up-to-date information.

What Types Of Compensation Are Available?   

In addition to Social Security Disability Insurance (SSDI) benefits, individuals who have sustained injuries resulting in a loss of earnings capacity may be eligible for compensation depending on their severe and long-term impairments. This includes: 

• Short-term disability benefits: These benefits are available through private insurance carriers. They are designed specifically for individuals who suffer injuries lasting less than six months, providing them with coverage during this period until they can return to the workforce.  
• Long-term disability benefits are also available through private insurance carriers. However, unlike short-term, these provide coverage over longer periods and usually last until retirement age.  
• Workers’ compensation: If you were injured while performing your job duties, you may be eligible for workers’ compensation, which provides income replacement & medical care-related expenses incurred from your workplace accident or illness.  

How To File A Claim For Loss Of Earnings? 

If you are entitled to claim any type of compensation mentioned above, the first step is contacting either your employer’s HR department (if applicable) or the insurance company which issued a policy. You should also gather relevant supporting documents such as medical records and receipts documenting expenses incurred due to your condition. These must be submitted with application packages within the prescribed time frame specified by the insurer/employer’s policy manual. It has to be done accurately so that there aren’t delays in the processing process down the line when everything else has been sorted.  

Conclusion

Understanding the process of claiming lost earning capacity in New York is crucial for individuals who have suffered injuries or illnesses affecting their ability to work. This guide has provided essential information to navigate through this complex process effectively.

It is important to consult with a qualified attorney specializing in workers’ compensation or personal injury law. They can guide you through the intricacies of the legal system and ensure your rights are protected.

Gathering necessary documentation, such as medical records, employment history, and expert evaluations, is vital to establish the extent of your lost earning capacity. These documents will serve as evidence to support your claim and determine the appropriate compensation.