Economic Damages From Wrongful Termination
The economic damages resulting from wrongful termination are substantial. An individual may become displaced from the labor market during a critical point in his or her career development. Even if an individual quickly finds re-employment following wrongful termination, the individual may have suffered economic damages if the earnings level pre-displacement is not quickly recaptured. There are two components to calculating the economic losses in wrongful termination litigation:
- The likely compensation that the individual would have earned absent the wrongful termination and
- The likely compensation that the individual can be expected to earn from alternate employment consequent to the wrongful termination.
The economic loss in a wrongful termination case is equivalent to the sum of:
- The difference between the two compensation streams and
- The foregone earnings growth.
The calculation of this loss can be based upon the plaintiff’s actual post-separation employment and earnings or on the statistically average employment and earnings the plaintiff could have received post-separation. Statistical information from the Displaced Workers Survey may also aid an expert in determining the economic damages resulting from wrongful termination