A Detailed Guide to Calculating Damages

In the event your case succeeds at trial, damages are the monetary award decided by the court. The purpose of damages is to "make you whole"—to put you back in the same place you would have been if the employer had not acted unlawfully. There are multiple types of damages, and the types you can receive will depend on your specific claim. 

Your Duty to Mitigate Damages

First and foremost, you have a legal duty to mitigate your damages. This means you must make a good faith effort to find a new job. You do not have to accept the first offer you receive or take a job outside of your field, but you must show that you were actively seeking new employment. To do this, we ask that you create a log of all the jobs for which you apply or interview. The wages from a new position will offset the damages you can recover from your former employer.

Types of Monetary Damages

Back Pay

Back pay is calculated from the date of the unlawful act to the date of the court’s decision. It includes all of the wages, salary, bonuses, commissions, and benefits you lost.

This can also include the value of "fringe" benefits such as:

• Stock options
• Pension and retirement benefits
• Health and life insurance
• Sick pay
• Employer-provided housing or use of a company car

Any earnings you receive from other work after the unlawful action will be subtracted from the back pay award. The court may also award "pre-judgment interest" to reimburse you for the loss of potential investment returns on your lost wages.

Front Pay

Front pay covers anticipated losses experienced after a court enters judgment and is awarded if you are not reinstated to your previous position. To calculate this, the court considers your likely earnings with your former employer, subtracts your likely earnings from a new job, and reduces that amount to a present, lump-sum value. Generally, courts limit front pay awards to a period of three to five years.

Compensatory Damages

These are damages for harm suffered outside of lost wages, including emotional distress, pain and suffering, or medical bills. Depending on your claim and the size of your former employer, there may be a legal cap on the amount of compensatory damages that can be awarded.

Non-Economic Damages: Addressing Intangible Harms

Emotional Distress Damages

Compensatory damages are available for harm you’ve suffered outside of lost wages. This includes emotional distress damages, which compensate for the psychological impact of the employer's conduct, such as mental anguish, humiliation, and loss of enjoyment of life. We can prove these damages through your testimony, as well as testimony from friends, family, or coworkers who observed changes in your behavior, and records from any treating medical professionals.

 Punitive Damages

Liquidated Damages

In some cases, a contract or a specific law may provide for liquidated damages. This often means a pre-designated amount for a contract violation or a penalty that requires the payment of double or triple damages if a claim is successful.

Other Types of Damages & Remedies

• Liquidated Damages: For certain claims, a statute may provide for liquidated damages, which can be a penalty requiring the payment of double or triple damages if the claim is successful.
• Damage to Credit and Professional Reputation: Wrongful termination can often lead to credit problems or harm your professional reputation and future employability. In some circumstances, this damage can be quantified and recovered as part of your award.
• Attorneys’ Fees: Most federal and state employment discrimination statutes require the employer to pay your attorneys’ fees if your claim is successful.
• Reinstatement & Accommodations: In some cases, a court can order an employer to hire you back into your previous position. In disability cases, a court may also order the employer to provide reasonable accommodations that enable you to perform your job.