When a workplace accident or occupational injury causes lost time from work, permanent disability, and permanent wage loss, an injured worker can be entitled to compensation for loss of earning capacity depending upon the body part(s) injured, but not loss of future earnings dollar-for-dollar. Understanding the difference between loss of earning capacity and loss of future earnings is important.
In broad terms, loss of future earnings refers to compensation for actual wages and benefits the injured worker would have received in the absence of the workplace injury. This can be an element of damages in personal injury cases, but not Wisconsin worker’s compensation. Loss of earning capacity (LOEC) refers to the overall reduction in the injured worker’s ability to earn money in the future, and is the only claim to partially compensate for loss of future earning ability in Wisconsin worker’s compensation.
Compensation for loss of future earnings represents the specific amount of money the injured worker would have earned if they had not been injured and instead could have continued working. For most workers, loss of future earnings includes the loss of wages or salary, plus overtime pay, bonuses, tips, and other income, such as retirement contributions, that cannot be earned because of their injuries.
For salaried employees, calculating loss of future earnings is straightforward and is determined by multiplying the injured worker’s daily wage by the number of missed workdays, and adding retirement contributions and other benefits. Similarly, hourly employees multiply the average number of hours worked per day times the number of days missed from work in the future times their hourly rate, plus retirement contributions and other benefits. Again, this is not available in Wisconsin worker’s compensation.
Loss of earning capacity is the only loss of future wage benefit available to injured workers in Wisconsin, and are rarely paid by a worker’s compensation insurance company without a dispute. LOEC benefits are expressed as a percentage applied to 1,000 weeks of work. These benefits are paid at the same rate as Permanent Partial Disability (PPD) benefits. An injured worker who is completely unable to work in the future due to a work injury can claim the highest level of LOEC benefits, which is permanent total disability (PTD). PTD benefits are paid for the injured worker’s lifetime at 2/3 of the worker’s gross average weekly wage rate, and come as close to loss of future earnings as Wisconsin’s worker’s compensation law allows. LOEC and PTD benefits are only available if an injured worker has permanent work restrictions from the work injury attributable to the body as a whole - such as neck, back, head or torso - not permanent restrictions only attributable to other body parts - such as hands, feet, shoulders, knees, and hips.
In Wisconsin, LOEC benefits are only available to workers who suffered a workplace injury resulting in permanent work restrictions to the spine, head, torso, or whole body. Benefits for LOEC are intended to only partially compensate the injured worker for lost wages over the course of their working life, but they are greater than benefits intended to partially compensate for wage loss in the healing period and permanent damage to a body part. To qualify, the injured worker must have reached maximum medical improvement (MMI) and have permanent restrictions that prevent them from earning the same amount they earned before the injury.
Because a claim for LOEC benefits can significantly increase the payout of a worker’s compensation case, many employers or their insurance companies generate a medical or legal dispute regarding them. Moreover, they are more likely to fight claims for LOEC benefits aggressively. As a result, obtaining these benefits often requires assistance from an experienced worker’s compensation attorney.
Understanding the full nature and extent of worker’s compensation benefits available to you can be challenging. Claims for LOEC benefits can significantly increase the value of your case and provide some financial assistance for you and your family after a workplace injury. The worker’s compensation attorneys at Kingree Law Firm can build a case for the benefits you are entitled to under Wisconsin’s worker’s compensation law.
Kingree Law Firm is a premier worker’s compensation law firm in Wisconsin. Our team of skilled and experienced worker’s compensation attorneys exclusively represents injured workers in claims for worker’s compensation benefits. We primarily represent injured workers outside the Milwaukee area and have earned a reputation as one of the top worker’s compensation law firms in the state.
If you have experienced a workplace accident or suffered an occupational injury that caused significant lost time from work, permanent disability, permanent wage loss, or if your claim for worker’s compensation benefits was denied, contact Kingree Law Firm today to schedule an appointment to discuss your situation and how we can assist you.
The information in this blog post is for general informational purposes only and does not constitute legal advice. Reading this post or contacting us does not create an attorney-client relationship. You should not rely on information, or advice on your specific situation, until an attorney-client relationship has been documented by written agreement.
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