Over the years I have gotten countless calls from plaintiff attorneys who ask, "My client has a 20% permanent disability. What lost earning capacity does he have?" From defense attorneys, the question is similar. They ask, "I got an IME and learned that the plaintiff has a 10% permanent impairment. What kind of earning capacity loss does he have?" The answer to both attorneys is, "I cannot say based on this information."

Understanding these terms is critical to evaluating lost earning capacity. Impairment is a determination of what is wrong with a certain part of the body due to an anatomical loss. Disability is the effect that impairment has on the performance of a major life activity, such as working. The worker's compensation arena utilizes the term "disability" for statutory reasons. A physician should not be asked if the injured party is "disabled." He should be asked whether permanent impairment exists and of what percentage to the whole person.

The next part of the evaluation is frequently overlooked by attorneys. To a vocational rehabilitation expert, percentage of permanent impairment is meaningless by itself. This is not to say that it is unimportant in evaluating the total case; to this expert, however, it does not mean anything without completing the picture. This means identifying the functional limitations that arise from the impairment. These can include limitations in standing, sitting, walking, weight lifting (material handling), reaching, etc.

Once these limitations are identified, the analysis of earning capacity can be done utilizing the factors I identified in my last column. Without this information, an analysis of impaired earning capacity cannot be done.