Front Pay

Navigating Front Pay in Employment Cases: A Comprehensive Overview

Understanding Front Pay

1. Defining Front Pay

• Front pay serves as compensatory damages awarded to plaintiffs in employment discrimination or anti-retaliation cases. It aims to financially restore terminated employees for lost compensation resulting from unlawful termination.

2. Key Aspects of Front Pay

• Accumulates during the period from filing the case to the court’s decision or until the plaintiff secures new employment.
• Compensates for loss of experience, harm to reputation, and other future effects.
• Aims to restore the plaintiff as much as possible for wages lost due to discrimination or retaliation.

Examples of Front Pay

1. Discrimination Case – Aamil’s Story

• Discriminated against for three years at a construction firm.
• Awarded front pay for promised work hours and pay over the three-year period.
• Compensation for lost wages during the four months of job search.
• Additional compensation for lost work experience and anxiety from a hostile work environment.

2. Retaliation Case – Heather’s Whistleblower Case

• Terminated after reporting health and safety violations.
• Entitled to front pay covering lost wages, reputational harm, and emotional distress.
• Compensation for the inability to find comparable work for two years.

Front Pay vs. Reinstatement

• Reinstatement restores an employee to their former position without loss of seniority, compensation, or benefits.
• Front pay awards for past and future losses, covering aspects beyond job and compensation restoration.

EEOC’s Role in Front Pay

• The EEOC investigates charges filed by employees against employers.
• Front pay limits apply, depending on whether the charge is resolved through conciliation or pursued through a lawsuit in federal court.

Limits on Front Pay

1. Calculation and Basics

• Calculated based on the employee’s pay rate or salary before termination events.
• Awards compensation for lost benefits like health insurance costs or 401(k) matches.

2. Additional Damages

• Limits apply to additional damages sought on top of basic front pay.
• Compensatory damages for pain and suffering or punitive damages to punish the employer.
• Limits vary based on the employer’s size:
  • 15-100 employees = $50,000
  • 101-200 employees = $100,000
  • 201-500 employees = $200,000
  • 500+ employees = $300,000

3. Factors Influencing Awards

• Age, work and life expectancies, mitigation efforts by the employer, length of employment, employee status, likelihood of continued employment, and time to secure comparable employment.

Understanding the nuances of front pay not only aids in navigating employment cases but also ensures equitable compensation for affected employees.