How Do Vocational Experts Assess Earning Capacity?

According to the U.S. Bureau of Labor Statistics, about 1 in 7 working-age Americans has a disability that may affect their ability to earn a living. For many of these individuals, earning capacity assessments are critical to determining fair wages, disability benefits, or legal settlements.

But how do we figure out what someone could earn if their job or health situation changes? That’s where a vocational expert comes in.

In this article, we’ll break down how vocational experts assess earning capacity in a way that’s easy to understand—even if you’re just hearing about this for the first time.

What Is Earning Capacity?

Earning capacity is the amount of money a person is able to earn based on their skills, education, experience, and health. It doesn’t always mean what they’re currently earning—it’s about what they could earn in the right job under normal conditions.

For example, if someone used to work as a construction worker but is now unable to lift heavy objects due to an injury, a vocational expert might evaluate whether they can do other types of work that still pay well.

What Is an Earning Capacity Assessment?

An earning capacity assessment is a special type of evaluation done by a vocational expert. It helps figure out how much money a person can reasonably earn now and in the future.

These evaluations are important in many real-world situations, such as:

• Personal injury cases
  
  
• Disability claims
  
  
• Divorce and spousal support disputes
  
  
• Workers’ compensation lawsuits
  
  
• Employment discrimination cases
  
  

The goal is to be fair to both the person who may have lost work ability and the party who might be responsible.

Who Are Vocational Experts?

A vocational expert is a trained professional who understands jobs, wages, and employment opportunities across different industries. Many of them have backgrounds in rehabilitation counseling, psychology, or human resources. Some even have advanced degrees and national certifications.

Vocational experts often testify in court and work with attorneys, insurance companies, and government agencies. Their opinions are trusted because of their experience, expertise, and training.

How Do Vocational Experts Assess Earning Capacity?

Let’s look at the step-by-step process a vocational expert usually follows:

1. Reviewing the Person’s Background

The expert begins by collecting detailed information about the person, including:

• Education level
  
  
• Job history
  
  
• Skills and training
  
  
• Certifications or licenses
  
  
• Work habits and interests
  
  

This helps build a full picture of the person’s professional life before any injury or change.



2. Assessing Medical or Physical Limitations

If the person has suffered an injury or has a disability, the vocational expert will study medical records, talk to doctors, and look at physical or mental limitations.

For example, if someone has lost mobility in their legs, the expert may rule out physical jobs but might explore remote or office-based careers that still match their skill set.

3. Using Career and Labor Market Tools

Vocational experts use trusted tools to explore what kinds of jobs the person can still do. These tools include:

• Dictionary of Occupational Titles (DOT).
  
  
• Occupational Outlook Handbook.
  
  
• O*NET Online (job descriptions and skill requirements).
  
  
• Bureau of Labor Statistics (BLS) wage data.
  
  

Using this data, they match the person’s qualifications with current job openings and income trends in their geographic area.

4. Performing Transferable Skills Analysis

If the person can’t return to their old job, the vocational expert checks which skills can transfer to other careers.

For instance, if someone was a truck driver but can no longer drive, they might still have organizational, route planning, or logistics skills that apply to dispatch or warehouse jobs.

5. Estimating Future Earning Capacity

Once all the data is collected, the expert gives a professional opinion on:

• What kinds of jobs the person can do now.
  
  
• What wages those jobs typically pay.
  
  
• How much income the person could realistically earn each year.
  
  
• How long they could stay employed in that role.
  
  

This estimate is often used in court cases or insurance claims to calculate lost wages or future financial support.

Why Are These Evaluations So Important?

Earning capacity evaluations have a big impact on people’s lives. Imagine being injured and unable to return to your old job. How do you prove that you still have value in the workforce? Or if you’re going through a divorce, how does a judge know whether one spouse can support themselves?

Here’s how these assessments help:

• They bring fairness to legal decisions.
  
  
• They help injured workers get proper compensation.
  
  
• They make sure people with disabilities are not underestimated.
  
  
• They support job training and career planning.
  
  

Real-World Example

Let’s say a 40-year-old woman was working as a nurse and got into a car accident. She can no longer stand for long hours. The vocational expert might determine that while she can’t work in hospitals anymore, she can still work as a medical case manager—a job that pays slightly less but still uses her skills.

This change in income becomes part of her legal settlement.

How OAS, Inc. Leads the Way

At OAS, Inc., our team of certified vocational experts has over 40 years of experience helping people across the U.S. We handle complex earning capacity evaluations for:

• Personal injury law firms
  
  
• Family law attorneys
  
  
• Insurance companies
  
  
• Government and private disability claims
  
  

We use up-to-date labor market data, comprehensive testing, and expert insight to make sure each evaluation is accurate and fair.

Final Thoughts

Earning capacity assessments play a major role in helping people move forward after life-changing events. With the help of a skilled vocational expert, individuals can better understand their work potential, even in difficult situations.

Whether you’re dealing with a legal case or looking to support a loved one, knowing how these evaluations work gives you power and peace of mind.

Contact OAS today and let our experts help you find the right path forward.