Not the same as lost wages, which are the paychecks or work hours missed while recovering. Loss of earning capacity is the reduction in a person's ability to earn money in the future because an injury, illness, or disability limits the kind of work they can do, how long they can do it, or whether they can stay employed at all. A deckhand who can no longer handle heavy gear, or a technician near Hillsboro who cannot return to precise hands-on work, may have earning capacity losses even if they eventually go back to some job.

This matters because the damage can last long after the first medical bills and missed shifts are over. The focus is not just on what someone earned before, but on what they likely could have earned over time without the injury. That can include reduced hours, fewer promotions, a forced career change, or early retirement. Proof often comes from medical records, work history, education, and sometimes expert opinions from a vocational expert or economist.

In an injury claim, damages for loss of earning capacity can be significant when the injury permanently changes a person's working life. In Oregon, this is generally part of a personal injury claim and is subject to the state's filing deadlines, including the Oregon personal injury statute of limitations, ORS 12.110 (2023), which is usually two years. Clear evidence linking the injury to future work limits can make a major difference in case value.