Loss of Earning Power Attorney

What Is Loss of Earning Power?

Earning power is your ability to earn an income. While that includes income from investments or interest earned from a bank deposit, loss of earning power means that, due to a work-related injury, you’re unable to earn the same or similar salary you did before your injury.

In Washington State, you can be compensated for the inability to earn as much as you used to due to a job-related injury. However, many injured workers don’t realize they’re eligible for loss of earning power (LEP) benefits, making it one of the most underutilized benefits available through Washington’s Department of Labor and Industries (L&I).

While LEP benefits are designed to help injured workers who can still work but work less due to their injury, it’s important to note that they are temporary and only paid as long as you’re earning less due to your injury. If your condition improves or your wages change, your loss or earning power benefit payments may be reduced, or you may no longer receive LEP benefits.

How Is Loss of Earning Power Different From Time Loss Benefits?

Labor and Industries recognizes two types of earned-income benefits for injured workers. The first is LEP, but the second is time-loss compensation, sometimes called wage replacement.

Time-loss compensation is paid when you can’t return to work due to an occupational disease or workplace injury. You’ll receive a portion of your regular wages during the time a doctor says you cannot return to work. 

The difference is that LEP benefits compensate an injured worker for their inability to earn the same salary they did before the injury, but they are able to work. Time-loss compensation is paid when an injured worker cannot return to work due to the injury.

Am I Eligible for Loss of Earning Power Benefits?

Eligibility for LEP benefits depends on a number of factors. First, your L&I claim must be open and active. Second, you must be able to return to work or currently working in any job. Importantly, you do not have to be working at the same job or for the same employer as when you are injured in order to receive LEP benefits.  

You may qualify for LEP benefits if you are earning at least 5% less than what you earned before your injury or disease. Your attending provider (your medical doctor, physician assistant, or other L&I approved medical provider) must certify that your reduced earning power is directly related to your work injury or occupational disease.

In some cases, loss of earning power benefits apply when:

• You had multiple jobs when you were injured, and can’t perform one of the other jobs even if it didn’t cause your current injury.
• You return to your job but have to work fewer hours than before the injury, including the inability to work and earn overtime, even if you’re earning the same hourly wage.
• You return to work in a light-duty role and are paid less.
• You’re in an L&I approved vocational retraining program
• You are found able to work in a different job using your transferable skills, but that position pays less than your wages before your work injury or occupational disease.
• You decline a light-duty role that would have paid less than your job before you were injured.