Can I Recover Compensation for Loss of Earning Capacity?

When an injury impacts your ability to earn income as you did prior to the incident, Arizona law provides avenues to seek compensation for this loss of earning capacity. This form of compensation is designed to address the reduction in your potential future earnings due to the injury.

In Arizona, workers’ compensation benefits include provisions for loss of earning capacity. According to the Industrial Commission of Arizona, if an injury results in a permanent impairment that affects your ability to work, you may be eligible for compensation based on the difference between your average monthly wage before the injury and your estimated earning capacity after the injury. This is typically calculated at 55% of the difference between these amounts. For instance, if your pre-injury average monthly wage was $4,000 and your post-injury earning capacity is assessed at $2,000, you could receive 55% of the $2,000 difference, amounting to $1,100 per month. ([azica.gov](https://www.azica.gov/sites/default/files/2023-09/Workers%20Compensation%20Information%20for%20the%20Injured%20Worker%202023%20Edit.pdf?utm_source=openai))

It’s important to note that the determination of loss of earning capacity considers various factors, including your age, education, work experience, and the nature of your injury. The process may involve vocational assessments to evaluate your ability to perform different types of work post-injury.

For example, in the case of Zimmerman v. Industrial Commission, the Arizona Court of Appeals addressed the complexities involved in assessing loss of earning capacity. The court emphasized the need to consider the availability of suitable employment within the injured worker’s restrictions and the competitive nature of the job market. ([journals.librarypublishing.arizona.edu](https://journals.librarypublishing.arizona.edu/arizlrev/article/8727/galley/8061/download/?utm_source=openai))

Given the intricacies involved in these cases, it’s advisable to consult with a legal professional who can guide you through the process and help ensure that you receive the compensation you deserve. Contact Hirsch Talcott at 602-903-6000 for a free consultation to discuss your specific situation and explore your options under Arizona law.

Where to get help

If this situation applies to you, Hirsch Talcott offers a free consultation — speak with a Phoenix personal injury lawyer to understand your options.