When is earning capacity the correct damages measure?

When the plaintiff cannot return to the prior career track, has thin or no earnings history (students, children), or actual post-injury wages understate vocational loss. Capacity uses BLS/OEWS occupational wages for suitable jobs identified by vocational experts.

Do I need a vocational expert before the economist finalizes capacity?

Yes, in most capacity cases. Vocational experts opine on employability and suitable occupations; forensic economists assign dollar values to those occupations. Draft vocational reports should be integrated before the economist locks post-event earnings levels.

Can both future earnings and earning capacity be analyzed?

Some jurisdictions allow alternative measures or both analytically. Counsel should align pleadings with the expert's construct. Network economists can prepare sensitivity analyses where ethically appropriate.

Loss of Earning Capacity Quantification

Quantify diminished earning capacity using market-based occupational earnings when specific job continuation is not the damages measure.

Capacity Loss When Specific Job Continuation Is Not the Measure

Many jurisdictions allow recovery for loss of earning capacity when a plaintiff cannot return to the same career track—even if actual post-injury wages are zero or volatile. This measure compares pre-event capacity to post-event capacity using market-wide earnings data for suitable occupations, not merely the last job held.

Confusion between loss of future earnings and loss of earning capacity is a frequent source of expert disputes and Daubert motions. Network economists build the correct measure for your theory and forum.

Our Capacity Analyses Include

Pre-event capacity baseline cross-checked with BLS/OEWS and industry surveys
Post-event capacity informed by medical restrictions and vocational opinions
Capacity differential over work-life expectancy with stated participation assumptions
Fringe benefits and present value treatment parallel to future earnings analyses
Expert report defending occupation classifications and earnings levels used

Vocational Coordination

Vocational experts opine on transferable skills and suitable jobs; forensic economists translate that into dollar capacity. Draft vocational reports should be integrated before finalizing post-event occupational earnings selections.

Methodology

Phase	What We Do	Deliverable
Theory & forum alignment	Confirm capacity (not wage continuation) is the damages measure. Review pleadings, IME, and vocational evidence.	Analytical framework memo for counsel
Occupational mapping	Document SOC-aligned pre- and post-event occupations. Justify earnings level selection (mean, median, or percentile).	Occupation and earnings level worksheet with BLS/OEWS citations
Work-life & differential	Apply work-life expectancy tables and case-specific reductions. Compute annual and lifetime capacity differential.	Capacity loss schedule by year
Report & testimony prep	Prepare expert report. Anticipate cross-examination on occupation choice and labor force participation.	Expert report and deposition preparation session

Frequently Asked Questions

When is earning capacity the correct damages measure?: When the plaintiff cannot return to the prior career track, has thin or no earnings history (students, children), or actual post-injury wages understate vocational loss. Capacity uses BLS/OEWS occupational wages for suitable jobs identified by vocational experts.
Do I need a vocational expert before the economist finalizes capacity?: Yes, in most capacity cases. Vocational experts opine on employability and suitable occupations; forensic economists assign dollar values to those occupations. Draft vocational reports should be integrated before the economist locks post-event earnings levels.
Can both future earnings and earning capacity be analyzed?: Some jurisdictions allow alternative measures or both analytically. Counsel should align pleadings with the expert's construct. Network economists can prepare sensitivity analyses where ethically appropriate.

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