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Definition of Future Earning Capacity

Earning capacity is what you are able to earn at a given point in time, whether it is the past, present or future. Your future earning capacity (FEC) refers to your capacity or ability to earn money in the future. In regard to a workers' compensation claim, future earning capacity is a multiplier that will increase the amount of your disability rating on the basis of the amount of wage loss that a kind of injury results in when it is compared to other types of injuries. The multiplier that is used is really an estimate or a generalization that is based on your injury and occupation. The multiplier that is used can be challenged.

In other words, a work-related injury or illness that reduces your ability to earn money in the future means that your disability rating will be higher, and you should receive a larger compensation. The evaluation of your future earning capacity has a profound effect on the largest monetary settlement that you will receive. In order to receive the best possible settlement, it may be wise to be represented by a workers' compensation attorney who will make sure that everything from the current level of your impairment to the future effects of your work-related injury or illness will be taken into consideration.

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