Damage Calculations for Wrongful Termination for Individuals in Houston
Wrongful termination cases may involve both economic and non-economic damages, making for complex damage calculations in many instances. There may be mitigating factors and statutory limits, as well, which will influence the final judgment.
If you believe you’ve been wrongly terminated and have experienced economic or emotional distress as a result, a forensic accounting expert who knows employment law can provide litigation support.
How are Damages Calculated for Wrongful Termination Cases?
In a wrongful termination case, damages are categorized as either economic or non-economic damages. Economic damages are quantifiable and usually represent the thrust of a wrongful termination case. These damages may include:
Back pay
Economic damages include loss of wages that the terminated employee would have earned if they had remained employed. To calculate back pay, the employee’s base salary and the time between the date of termination and the date of judgment are used as the calculating factors.
Loss of benefits
Bookkeeping inefficiencies make it impossible for business owners to forecast cash flows and optimize operational, personnel and marketing decisions.
Front pay
With zero financial transparency, it will be impossible to maintain tax compliance or attract investors.
Bonuses and commissions
If bookkeeping falls behind, so will invoice tracking for your company’s accounts receivable. As such, clients may be delinquent in their payments without you realizing it.
In addition to economic damages, non-economic damages may be included in the final calculation. These damages may include:
Emotional pain and distress
Economic damages include loss of wages that the terminated employee would have earned if they had remained employed. To calculate back pay, the employee’s base salary and the time between the date of termination and the date of judgment are used as the calculating factors.
Reputation harm
Bookkeeping inefficiencies make it impossible for business owners to forecast cash flows and optimize operational, personnel and marketing decisions.
Punitive damages
Economic damages include loss of wages that the terminated employee would have earned if they had remained employed. To calculate back pay, the employee’s base salary and the time between the date of termination and the date of judgment are used as the calculating factors.
Mitigating Factors and Statutory Limits May Affect Any Damage Calculations
There may be offsetting factors that either cap or reduce the damages that a wrongfully terminated employee is entitled to. They’re categorized as either statutory limits or mitigating factors:
- Statutory limits – Federal and state law may limit the amount that someone can recover in a wrongful termination case. The Age Discrimination in Employment Act (ADEA), for example, places statutory limits on wrongful termination cases involving age discrimination.
- Mitigating factors – Even if an employee was considered wrongfully terminated, they must still take measures to offset any economic impacts. This includes seeking other employment. If actions like these aren’t taken following termination, damages may be reduced.
Five Examples of a Wrongful Termination
Not sure if you’ve been wrongfully terminated? There are several types of wrongful termination cases, including:
Breach of contract
Termination that violates the terms of an employment contract.
Discrimination
Termination motivated by age, gender, race or religious discrimination (or discrimination against another protected category).
Retaliation
Termination that’s in response to an employee engaging in a protected activity, such as reporting safety violations or harassment. Whistleblower retaliation is what most people think of in this regard.
Violation of public policy
Termination in response to an employee fulfilling a community action or engaging in a legal right, such as voting or attending jury duty.
Family or medical leave
Termination in response to an employee taking maternity or paternity leave or taking a medical leave under the Family and Medical Leave Act (FMLA).
Any of the above may be the subject of a wrongful termination case, but the details are important. Before pursuing litigation, it’s important to consult with an employment law expert.
A Forensic Accounting Expert Can Help with Damage Calculations for Wrongful Termination
Damage calculations for a wrongful termination case can be a challenge. They frequently involve subjective and complex factors, so litigation support specialists like forensic accounting experts are often brought in to assist with the process. With a forensic accounting team assisting with your wrongful termination case, you’ll be able to support your damage claims.
