A personal injury claim needs an economist once the loss runs past what the pay records show on their face. A few weeks of documented lost wages can be presented from the pay stubs alone. When the person has not returned to the prior job, has returned at reduced hours or pay, faces future treatment, or can no longer do the household work they did before, the projection, growth, and present value questions call for an economic analysis. The decision turns on the size and duration of the loss, not on the severity label attached to the injury.
Checklist
Confirm how long the person was out of work and whether they have returned at the same or a lower level of earnings
Gather three to five years of tax returns, W-2s or 1099s, and recent pay stubs so the pre-injury earnings base can be judged
Identify the fringe benefits that came with the job: employer retirement contributions, health insurance, and any pension accrual
Determine whether a treating provider has projected future treatment or whether a life care plan exists or is planned
Note who did the household work before the injury and what the person can no longer do at home
Questions to ask the economist
At what size and duration of loss do you recommend an economic analysis rather than a pay-records presentation?
Which records do you need first to tell us whether the claim is large enough to justify a full report?
How do you handle a case where the post-injury work capacity opinion has not been written yet?
Can you provide a preliminary range before the full engagement so we can evaluate the claim?
Timeline
One to two weeks from the first call to a preliminary view of the loss, once the earnings records are in hand. A full report follows the retention and records phases described on the services pages.
Required documents
Tax returns for the years before and after the injury
W-2s, 1099s, or pay stubs showing earnings history and any post-injury earnings
Employer benefit summaries or plan documents
Medical opinions describing current work restrictions, if any exist yet
Common pitfalls
Waiting until the disclosure deadline to ask whether an economist is needed, which compresses the records request and the analysis
Assuming a modest injury means a modest claim when the person's occupation cannot accommodate the restrictions
Overlooking household services and fringe benefits, which can rival the wage loss for some households
Is there a minimum loss that justifies retaining an economist?
There is no fixed threshold. The practical test is whether the loss extends into the future or involves components that must be projected, grown, and discounted. A short, fully documented past wage loss rarely needs an expert; a loss that continues past the date of trial almost always does.
Can the economist work from partial records at this stage?
Yes. A preliminary range can be built from tax returns and a description of the injury's effect on work. The full report needs the complete earnings and benefit records, and the post-injury path needs the medical or work-capacity opinions in the record. When no such opinion exists, that gap is coordinated with a vocational specialist rather than filled by the economist.
What does a preliminary economic analysis cost relative to a full report?
A preliminary range is a limited engagement built from the tax returns and a description of the injury's effect on work, so it costs far less than a full report. The full report adds the records review, the projection of each component, the sensitivity tables, and the written opinion, and the engagement letter states the fee basis for each phase. Counsel can stop after the preliminary range if the loss does not justify going further.
References
U.S. Bureau of Labor Statistics. (n.d.). Current Population Survey (CPS). U.S. Department of Labor. bls.gov
U.S. Bureau of Labor Statistics. (n.d.). Employer Costs for Employee Compensation (ECEC). U.S. Department of Labor. bls.gov
National Association of Forensic Economics. (n.d.). NAFE's ethics statement. Retrieved August 27, 2026. nafe.net