Quantifying Your Damages
Wrongful termination occurs when an employer fails to follow proper procedures or violates employment laws when dismissing an employee. This can include acts of retaliation, violation of “right to work” laws, or workplace discrimination based on factors like race, disability, religion, sex, age, or sexual orientation. Employees who believe they have been wrongfully terminated have the legal right to pursue claims for compensation from their former employer.
Establishing a Wrongful Termination Claim
To build a successful wrongful termination case, employees must gather compelling evidence to support their claims. This may involve collecting data points such as pay stubs, work schedules, benefit statements, correspondence with HR or supervisors, witness statements, medical records, financial documents, and personal testimony. Experienced employment lawyers can help navigate this process and ensure the strongest possible case is presented.
Quantifying Damages in Wrongful Termination
Calculating the appropriate damages in a wrongful termination lawsuit is a complex undertaking that requires a thorough analysis of the employee’s unique circumstances. Damages can be divided into two broad categories:
- economic
- non-economic
Economic Damages in Wrongful Termination Cases
Lost Earnings
Economic damages typically include lost past and future earnings, encompassing the employee’s base salary, bonuses, commissions, and anticipated raises and promotions that were forfeited due to the unlawful termination. These calculations aim to compensate the employee for the cumulative income lost from the time of firing until the trial date, as well as the projected future earnings the employee would have earned had they remained employed.
Loss of Benefits
In addition to lost wages, wrongful termination settlements may also cover the expenses incurred by the employee in replacing fringe benefits like health insurance, life insurance, dental and vision coverage, and other non-monetary benefits that were previously provided by the employer.
Medical Expenses
Employees may be eligible for compensation to cover medical expenses that would have been covered under their previous employer-provided healthcare plan, had they not lost their job. This can include costs associated with deductibles, copays, and any uncovered treatments or procedures.
Job Search Costs
Reasonable expenses incurred by the employee during their search for a new job, such as travel costs for interviews or professional development activities, may also be included in the settlement.
Non-Economic Damages in Wrongful Termination Cases
Pain and Suffering
Non-economic damages encompass the emotional distress, mental anguish, and psychological trauma experienced by the employee as a direct result of the wrongful termination. The monetary value of these damages can be challenging to quantify but may increase if the employee has been diagnosed with conditions like depression or post-traumatic stress disorder.
Reputational Harm
Wrongful termination can also lead to damage to the employee’s professional reputation, which may be compensated through the settlement. This can include lost opportunities or difficulties in securing future employment due to the stigma associated with the unlawful dismissal.
Punitive Damages
In cases where the employer’s conduct was particularly egregious, reckless, or malicious, the court may award punitive damages as a means of punishment and to deter similar behavior in the future. These damages are determined by the jury and can significantly increase the overall settlement amount.
Calculating the Settlement Value
Determining the appropriate settlement value for a wrongful termination case involves considering a multitude of factors, including the employee’s salary, benefits, age, job type, education, experience, and the specific circumstances surrounding their termination. Additionally, the strength of the evidence presented and the reputation of the employer can also influence the final settlement amount.
Average Wrongful Termination Settlement Ranges
According to data from the Equal Employment Opportunity Commission (EEOC), the average out-of-court settlement for wrongful termination cases typically falls within the range of $5,000 to $80,000. However, it’s important to note that approximately 10% of wrongful termination cases result in verdicts of $1 million or more, particularly when the termination was due to discrimination based on factors like race, disability, or sex.
Engaging a Forensic Economic Expert
Given the complexity of calculating damages in wrongful termination cases, many employees choose to enlist the services of a forensic economic expert. These specialists possess the necessary knowledge and tools to thoroughly analyze the financial impact of the unlawful termination, providing critical evidence and testimony to support the employee’s claims and maximize the potential settlement.
Navigating the Settlement Process
The settlement process for a wrongful termination case often begins after the employee files a formal complaint with the appropriate government agency, such as the Maryland Commission on Civil Rights or the U.S. Equal Employment Opportunity Commission. During the subsequent investigation period, both the employee and the employer present their evidence, which can sometimes convince the employer to negotiate a settlement before the case proceeds to litigation.
Importance of Comprehensive Evidence
The strength of the evidence presented, which may include pay stubs, work schedules, benefit statements, correspondence with HR, witness statements, medical records, receipts, financial documents, and personal testimony, can play a significant role in the settlement negotiations. Experienced wrongful termination lawyers are adept at gathering and presenting the most compelling evidence to support their client’s claims and maximize the potential settlement.
Considering Settlement versus Litigation
Many employees and employers choose to settle wrongful termination cases out of court, as litigation can be time-consuming, expensive, and emotionally draining. While settlements may not always provide the maximum potential compensation, they can offer a quicker resolution and the opportunity to move forward without the ongoing stress of a prolonged legal battle.
Conclusion
Navigating the complex landscape of wrongful termination settlements requires a comprehensive understanding of the legal landscape, the various types of damages available, and the strategies for effectively quantifying and presenting the employee’s claims. By working closely with experienced employment law professionals and forensic economic experts, employees who have been wrongfully terminated can pursue the compensation they deserve and begin the process of moving forward with their lives.
