Legal Definitions - lost earnings

Definition: Lost earnings refer to the wages, salary, or other income that a person could have earned if they had not lost their job, suffered a disabling injury, or died. These earnings are typically awarded as damages in personal injury and wrongful termination cases. Lost earnings can be past or future.

Example: If a person is injured in a car accident and is unable to work for six months, they may be entitled to compensation for their lost earnings during that time. For example, if they were earning $3,000 per month, their lost earnings would be $18,000.

Explanation: This example illustrates how lost earnings are calculated in a personal injury case. The person's earnings before the accident are used as a baseline to determine how much income they lost due to their injury. This compensation is meant to help them cover their expenses and maintain their standard of living while they are unable to work.