What You Need to Calculate Damages in a Wrongful Termination Case

Estimating compensation for a wrongful termination case can be incredibly complex. Here’s all you need to know about How to Calculate Damages in a Wrongful Termination Case.

If one feels a former employer wrongfully terminated them, they have the legal right to file a compensation claim with a court. Before seeking compensation, one must provide a legal and sufficient ground for a wrongful termination case and learn about the factors involved in calculating their economic damages.

What is a Wrongful Termination Lawsuit?

A wrongful termination lawsuit is when a plaintiff files a civil suit against a former employer for failing to follow proper procedures before discharging the employee. In a wrongful termination suit, a plaintiff (employee) requests the court to order the former employer to compensate them for the losses resulting from termination. Financial compensation for the losses is economic damages, which the plaintiff can gain after proving their losses to the court.

Grounds For A Wrongful Termination Case

A plaintiff can claim damages for wrongful termination against their employer under the following grounds:

  • Contractual breach
  • Defamation
  • Failure to follow proper firing procedures
  • Fraud
  • Retaliation
  • Violation of one’s right to work laws or public policy
  • Workplace discrimination, including race, gender, ethnic background, age, religion, disability, or sexual orientation

Related: Do I Have a Case for Wrongful Termination?

Monetary Damages

A plaintiff may recover the following monetary damages after settling a wrongful termination lawsuit:

1. Lost Pay

2. Lost Benefits

Lost benefits may include medical and dental insurance, 401k plans, stock options, etc.

3. Emotional Distress

A plaintiff may receive compensation for “pain and suffering” damages.

4. Punitive Damages

A plaintiff may recover damages from an employer’s egregious conduct, discrimination, retaliation, or indifference. The damages intend to punish the employer and prevent behavior like this in the future.

5. Attorney Fees:

The employer may need to pay the plaintiff’s legal fees and court costs.

6. Liquidated Damages

A judge may decide to compensate the plaintiff for any education and training expenses formerly required from their employer.

Related: How to Calculate Damages for a Wrongful Termination Case

How to Calculate Wrongful Termination Settlements

The first step in calculating one’s wrongful termination settlement is determining total annual compensation, including the former job’s salary, bonus, commission, and benefits. The plaintiff may multiply this number by the number of unemployment years. However, one must consult with an expert in forensic damages to properly account for other factors, such as age, education, experience, etc.

Related: How Much Does a Wrongful Termination Lawyer Cost?

FAQs About How to Calculate Damages in a Wrongful Termination Case

1. How do you prove wrongful termination?

The plaintiff must provide evidence against the former employer portraying an illegal reason for their discharge. Evidence may include conversations with an employer or supervisor or documents of retaliation.

2. How much should I settle for a wrongful termination case?

The monetary settlement in a wrongful termination lawsuit varies by case. The average settlement ranges from $5,000 to $80,000 and depends upon various factors.

3. How long do I have to sue for wrongful termination?

Depending upon the claim, an employee has thirty days to three years to sue for wrongful termination.

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