What You Need to Know About Negotiating a Wrongful Termination Settlement
Wrongful terminations are frustrating processes varying by state. Here’s everything you need to know about negotiating a wrongful termination settlement.
What is Wrongful Termination?
Wrongful termination is when an employer fires their employee for reasons that breach one or more terms listed in the employment contract or statute in state law.
Some states, however, are “at-will” employment states, meaning a state permits an employer to fire an employee without reason. “At-will” states do not protect employers from firing an employee, violating their contract, or firing based on discrimination or other federal statutes.
Why a Settlement?
A wrongful termination settlement can save attorney costs and fees. A settlement can help the plaintiff receive some payment. In wrongful termination lawsuits, the burden of proof falls onto the employee. Therefore, courts dismiss most cases, especially in “at-will” employment states.
Related: How to Calculate Damages for a Wrongful Termination Case
Factors Influencing Settlement Amounts
If the former employee and employer settle, many different “damages” can influence the amount the plaintiff receives. Parties should consider these factors when negotiating a settlement.
Lost Wages
Lost wages pertain to the amount of money the plaintiff lost due to their unemployment (use formula: salary/ hourly wages totaled by time elapsed since termination)
Lost Benefits
Lost benefits include health, dental and other insurances lost due to termination and their values.
Emotional Distress
The law classifies emotional distress as “pain and suffering.” The case’s judge or mediator uses their discretion to evaluate emotional distress.
Job-hunting related costs
Job-hunting related costs refer to any costs the plaintiff accumulated while employed, such as job training or employment services.
Punitive Damages
If the court considers the employer’s actions egregious, the judge might base their award on intangible damages the plaintiff incurred due to the employer’s actions.
Related: Do I Have a Case for Wrongful Termination?
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If you or a loved one would like to learn more about negotiating a wrongful termination settlement, get your free consultation with one of our most qualified attorneys today!