Pettingill Analytics
Methodology

Lost Earnings vs Earning Capacity (2026)

Why the distinction matters and how it is applied in 2026.

Lost earnings measure what the plaintiff was actually earning and would have continued to earn. Lost earning capacity measures the plaintiff's ability to earn, anchored in education, occupation, training, and labor market data — distinct from what was actually being earned at the time of the injury.

The choice between the two is jurisdictional and case-specific. Where the plaintiff was a minor, a homemaker, a student, or otherwise not yet realizing their earning capacity, the capacity measure is the appropriate frame.

Frequently Asked

Frequently Asked

When is earning capacity preferable?
When the plaintiff's actual earnings at the time of injury do not reflect their long-term economic potential — including minors, students, recent graduates, and individuals between jobs.

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