Lost wages theory

There are multiple theories for determining the amount of compensation. Three major ones are the whole-man theory, the lost wages theory, and loss of earning capacity. One or more of the theories may apply under a particular law. 

Lost Wages Theory The lost wages theory considers the actual loss in wages compared to a standard that estimates what the individual would have earned. When actual earnings are less than the standard and the reduction in earnings is due to the impairment, the actual compensation will maintain the income at or near the standard. 

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