One of the most controversial issues we face when establishing lost earning capacity arising out of an accident is the role of pre-injury earnings. While it can be argued that pre-injury earnings are presumptive of pre-injury earning capacity, this is a rebuttable presumption which is not always accurate.

Earning capacity is defined as the ability of one to sell his services in the open labor market. This is a function of one's access to the labor market, placeability, and labor force participation rate. Age, education, work history, transferable skills and prevailing labor market trends in the geographic area considered for the evaluation determine the access to the labor market and resultant earnings that one can command.

Identification of as broad an income stream as possible prior to the accident is critical to an objective establishment of pre-injury earning capacity, as is clear establishment of sectors of the economy in which one worked and the jobs held. Realistic determination of pre-injury earning capacity can then be established.

Temporary or part-time work, employment in a sector of the labor market for which one may not have been optimally suited or temporary unemployment are factors which must be scrutinized by the vocational rehabilitation specialist prior to establishing pre-injury earning capacity.