Vocational Diagnostics, Inc. - Earning Capacity Evaluation

Earning Capacity Evaluation

Earning Capacity Evaluation (ECE) is an evaluation of the plaintiff’s ability to work and earn wages prior to and following the event that is the subject of the litigation. The key word here is ability. Performed in a manner consistent with the widely used, peer-reviewed and published RAPEL methodology, an earning capacity evaluation provides information regarding the plaintiff’s lost wages and diminished (or lost) future earning capacity arising from the injuries sustained in the event that is the subject of the evaluation.

An ECE is also used in other cases, such as Family Law and Domestic Relations, where the earning capacity of a spouse may be at issue.

A plaintiff’s wage-earning history may or may not be presumptive of their earning capacity prior to the event that is the subject of the litigation. The vocational experts at VDI provide an individual-specific analysis to provide objective evaluations of a plaintiff’s ability to work and earn wages. An ECE can be done in any case where the ability to work and earn wages is a consideration. VDI is routinely retained in cases involving children or young adults without an earnings history. In such cases, the peer-reviewed and published PEEDS-RAPEL methodology is used.

An ECE can also be done in a wrongful death case. While many attorneys believe that a forensic economist is the only expert who is capable of doing such an analysis, that is incorrect; since wages alone are not presumptive
of earning capacity, it often falls to the vocational rehabilitation expert to first evaluate the earning capacity of a decedent prior to the forensic economist’s involvement in the case.

When Should an Earning Capacity Evaluation Be Done?

An earning capacity evaluation should be done anytime there is the possibility that a plaintiff may have a permanent physical or mental impairment arising from the injuries sustained in the event that is the subject of the litigation that could affect the plaintiff’s ability to work. The presence of permanent impairment alone, however, does not mean that one has sustained a loss of earning capacity. Other factors, such as functional limitations arising from the impairment must also be determined for the
ECE to be done.

VDI vocational experts are available for consultation to determine if all the data necessary to perform this evaluation has been provided at the time of referral and, if necessary, assist the referral source in gathering the necessary data for an ECE to be done.

Remember, any claim for lost wages and the presence of a medical or psychological condition that could affect the plaintiff’s functional ability to work means that an ECE will probably be necessary.