Undoubtedly, past earnings are an important determinant of future income. In a personal injury matter, this will often mean that the pre-accident level of earnings provides the best predictor of what might have been achieved absent the accident. Even in such an instance, however, the pre-accident T4 slips will increasingly represent an unreliable forecast of absent accident earnings as time passes. Underlying inflation and wage growth, collective agreement ratifications, labour market changes and even the bankruptcy or acquisition of the pre-accident employer can all tend to suggest that the absent accident earnings may need to be estimated with the help of expert assistance. There is also the issue of absent accident promotions or career advancements.
Labour economic literature has indicated that besides past earnings such factors as location age, gender and educational attainments may also play a critical role in determining future income levels. Data obtained from a census or from other sources may be used as an important aid in estimating wage losses in cases where it is not appropriate to simply project past earnings forward. This especially applies to children and younger workers, who will generally lack any meaningful labour market history that would aid in estimating their absent accident earnings. It is also possible to calculate the effect of chronic injuries on earning capacity in terms of decreased opportunities for employment.
Not all workers punch a time clock and some have earnings that can vary considerably from year to year. Real estate agents, financial planners and commissioned salespeople all can have wild fluctuations in their year to year earnings. These at times can mask the effects of the accident. While no one can "know" what the commissions would have been absent the accident, a careful analysis of underlying market conditions can help to isolate the effects of the accident on a salesperson's earnings.
Call Kevin or Carol at 778-298-1781 to discuss the particular situation of your client. We are also happy to talk directly with your client, if you wish.
