Calculating Damages for a Wrongful Termination Case in California
Estimating compensation for a wrongful termination case can be tricky. Here is a guide to calculate damages for a wrongful termination case in California.
To estimate damages for a wrongful termination case, you would need to calculate your total annual compensation from the job you were terminated from. Total annual compensation is made up of salary, bonus, commissions, and benefits.
Remedies for Wrongful Termination Caused by Discrimination
If a case is won, an employee is entitled to monetary compensation, also known as remedies. Victims of discrimination are compensated for job searches, medical expenses, and emotional harm due to the wrongful termination.
Punitive damages can be rewarded to the employee if the employer caused extreme distress from excessively malicious or reckless acts of discrimination.
Victims of age discrimination or intentional sex-based wage discrimination may be entitled to liquidated damages. The amount of liquidated damages an employee may receive is equal to the amount of back pay awarded.
Liquidated Damages
Liquidated damages are punitive damages that are designated and common in employment contracts. If liquidated damages are deemed excessive, the clause will be void by the court.
Related: How to File a Wrongful Termination Lawsuit in California
Damages for Wrongful Termination Caused by Discrimination
The purpose of a victim receiving damages is to make the plaintiff financially whole. This means that the employer must compensate the employee for lost wages in order to make them economically whole as if they were never terminated. This can be done through back pay, front pay, and punitive damages.
Back Pay
Back pay consists of wages, salary, bonuses, commissions, and benefits that were lost due to discrimination or unlawful termination. It can be calculated either by date of discrimination or date of termination up until the date of the court’s decision.
Front Pay
Front pay consists of the amount of benefits and compensation deemed by the court as equivalent to the amount of pay that was lost due to termination. This amount depends on how long the court deems it will take for the victim to find a job that will give them the same level of pay, including all lost benefits.
Punitive Damages
Punitive damages are awarded to employees with the purpose of punishing the employer and deterring other employers from making the same choices. Punitive damages are based on the intentions of the employer and rarely awarded by courts.
Job Reinstatement as Compensation
An employee may receive their previous job back as a remedy. However, this may not always be possible due to termination of position, as well as hostile work environments.
Adequate Reasons for Compensatory Damages
Compensatory damages can be awarded for:
- Emotional Distress
- Pain and Suffering
- Medical Bills
- Medical Impairment
- Permanent Disability
Limits on Damages Based on Company Size
In California, employers with
- 15-100 Employees have a $50,000 limit on damages
- 101-200 Employees have a $100,000 limit on damages
- 201-500 Employees have a $200,000 limit on damages
- 500 + Employees have a $300,000 limit on damages
FAQs About Calculating Damages in Wrongful Termination Cases
What is the average payout for Wrongful Termination?
The average wrongful termination settlement in California is around $40,000. It is important to keep in mind that there is a cap to how much the payout can be determined by the size of your employer’s business.
How Do I Win a Wrongful Termination Case?
In order to win a wrongful termination case, you must prove that you were terminated for illegal reasons. Grounds for a wrongful termination case can be discrimination or breach of a contract.
How Long Do I Have to Sue for Wrongful Termination?
An employee has 180 days to file a wrongful termination suit from the date of dismissal. However, they have 300 days to sue an employer for wrongful termination due to discrimination.
Related: Wrongful Termination Statute of Limitations in California
Will I be able to receive all the backpay from my case?
The most typically awarded damages in wrongful termination cases are back pay and benefits.
Contact Us
If you or a loved one would like to calculate damages for a wrongful termination case, get your free consultation with one of our California Wrongful Termination Attorneys today! We won’t charge a dime unless you win your case.