Assessing lost wages in personal injury cases presents a complex challenge that requires the expertise of credentialed forensic professionals, including certified public accountants (CPAs). These practitioners perform detailed financial analysis to assess the economic impact of an injury on an individual's earnings.

Forensic professionals are essential in providing an objective assessment of how an injury affects a person's earnings based on past earnings as well as projected future earnings. They conduct thorough examinations of several key factors, such as the individual's earnings before the injury, their career progression prospects, prevailing market trends, and the potential for future earnings. Employing sophisticated financial modeling, forensic professionals aim to deliver reliable and dependable estimations of the financial losses stemming from the injury, if any.

Challenges when calculating lost wages

A significant challenge in this process is establishing a reliable baseline for the individual's earnings prior to the injury. This involves gathering financial documents, such as tax returns, bank statements, pay slips, and employment agreements, to accurately depict the individual's earning history. Furthermore, forensic professionals must consider possible variables, like bonuses, overtime compensation, and potential career advancement, to provide a thorough assessment of individual's earnings history. After determining the earning capacity prior to the injury, forensic professionals focus on the injury's effects on the person's ability to work and generate income. This assessment often requires collaboration with medical and vocational professionals to gauge the severity of the injury and any prolonged impact on employment opportunities.

To accurately gauge future earning potential, a comprehensive wage loss analysis also needs to factor in market trends and economic projections. Forensic professionals incorporate information, such as industry-specific trends, labor market conditions, and inflation, to ensure a thorough assessment of the injury's financial impact while considering potential wage increases and future career opportunities.

The crucial role of forensic professionals

Accurately quantifying lost wages in personal injury matters involves a detailed and interdisciplinary method with forensic professionals playing a crucial role. Their expertise in financial analysis is instrumental to ensure that individuals receive equitable compensation for any potential economic losses.

To learn more about accurately assessing wage loss in personal injury cases or other matters in which Citrin Cooperman’s Forensic and Litigation Advisory Services Practice can provide assistance, please contact Partner Thomas Garland at tgarland@citrincooperman.com.